Eliminating the cost of the Asset Purchase Indemnity

The Asset Purchase Facility has landed HM Treasury with a ~£90 billion bill over the next two year. This paper lays out an approach that requires no further vote funding from Parliament, no additional debt interest payments, and restores “postive cash flow” from the APF for the remainder of this Parliament.

27 Dec 2022 08:32 +0000 · 7 min · NeilW

Whole of Government Accounts: some juicy quotes

Once intra-government transactions are eliminated, QE represents an exchange of gilts (liabilities of the National Loans Fund) for central bank reserves (liabilities of the Bank of England)

28 Oct 2022 08:24 +0100 · 3 min · NeilW

Gilt issues considered harmful

The public debt markets add less value to national prosperity than their opportunity costs. A proper cost-benefit analysis would conclude that the market should be terminated.

28 Oct 2022 06:25 +0100 · 7 min · NeilW

How to fix the government's borrowing costs

The government borrows at a price of its choosing. Here’s how.

23 Oct 2022 08:12 +0100 · 2 min · NeilW

How Much Is Government Borrowing? A Critique

My favourite BBC article has been rewritten again and more inaccuracies added. Let’s go through them.

4 Oct 2022 12:22 +0100 · 5 min · NeilW

All Government Spending Is Borrowed, Every Day

When the HM Government buys anything, all the money to pay for it is automatically borrowed from the Bank of England, interest free and without limit

3 Oct 2022 07:07 +0100 · 3 min · NeilW

HM Treasury sets the price, not The Market

Today we discuss the errors of thinking in the article: ‘Trussonomics’ has put the PM on a collision course with the Bank of England

19 Sep 2022 14:52 +0100 · 4 min · NeilW

The Madness of Clowns

The failure of its leaders to understand how sovereign currencies work is now starting to cripple the West

3 Sep 2022 05:53 +0100 · 5 min · NeilW

The UK Energy Crisis: an MMT Analysis

Listening to politicians talk about the UK energy crisis is like watching bald men fighting over a comb. None of them get to the root cause - a shortage of natural gas. When you take an MMT view, that’s where you start.

18 Aug 2022 07:33 +0100 · 7 min · NeilW

Sim CB - An Economic Game

Sim CB is a new economic simulation game, with some interesting MMT outcomes

18 Jun 2022 06:55 +0100 · 2 min · NeilW