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.
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)
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.
The government borrows at a price of its choosing. Here’s how.
My favourite BBC article has been rewritten again and more inaccuracies added. Let’s go through them.
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
Today we discuss the errors of thinking in the article: ‘Trussonomics’ has put the PM on a collision course with the Bank of England
The failure of its leaders to understand how sovereign currencies work is now starting to cripple the West
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.
Sim CB is a new economic simulation game, with some interesting MMT outcomes