Bloomberg
Bloomberg: Pandemic Bills Are So Big That Only Money-Printing Can Pay Them
Forced into record spending by the threat of another Great Depression, policy makers are blurring the lines between borrowing the money they need and simply creating it.Most modern economies have tried to keep the two activities as separate as possible. The typical setup has been for elected politicians to take charge of budgets, and meet any shortfall by borrowing on bond markets –- while the money-printing machinery was walled off in another branch of government, the central bank.But those barriers began to look porous after the financial crisis of 2008. And in the coronavirus slump, they’ve all but disappeared.
With entire industries shuttered and unemployment soaring, only public spending is keeping millions of households and businesses afloat. The governments on the hook for this relief effort are running up some of history’s biggest budget deficits. And they’re paying at least some of the bills with what are effectively loans from their own central banks –- debt that can be rolled over indefinitely, and is really more like money.
Read more ....
WNU Editor:I have seen this play book play out so many times in so many countries over the years. We will have inflation, and its impact will be different for different countries.
0 Response to "Only Money-Printing Can Pay The Pandemic Bills That Governments Are Piling Up On"
Post a Comment