Frances Coppola on People’s QE and the effectiveness of central bank policies

Frances explains what quantitative easing (QE) is and what’s good and bad about it. It can help to avoid debt deflation but at the same time benefits the rich, because the trickle down effect is limited. Central banks seem to be able to do only thing: buy more things.

Frances explains the different types of QE such as helicopter money to citizens or monetizing government’s debt. The most difficult problem is actually getting the money to the people.

Which People’s QE you choose depends on your purpose and timing.

Frances and Paul also touch upon ethics, debt to gdp ratios and the eurozone. Frances understands why ECB keeps the thing afloat but she is not a big fan of the euro.

They end the conversation with central bank digital currencies. Frances is in favour because now we entirely depend on commercial banks for payments.

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