Category: Monetary policy

Fiscal and monetary policies in a time of Covid

Here’s a presentation I gave on 19th October (to A-level economics and business students) on fiscal and monetary policies in the UK, covering topics such as the impact of Covid on the public finances, whether taxes will have to rise to pay for it, whether the BoE should ease further, the pros and cons of … Continue reading Fiscal and monetary policies in a time of Covid

A(nother) critique of ‘Modern Monetary Theory’

Imagine that the government could simply print whatever amount of money it needed to guarantee everyone a decent income, fantastic public services, and a secure job if they wanted one – with enough left over to save the planet too. That, for many, is the promise of a new economic paradigm known as “Modern Monetary … Continue reading A(nother) critique of ‘Modern Monetary Theory’

No, the government still hasn’t found a ‘magic money tree’!

Who’d have thought the Treasury’s ‘Ways and Means’ facility at the Bank of England could cause so much excitement? The two parties have agreed a temporary extension of what is, in effect, the government’s overdraft account with the central bank. Cue great delight from advocates of printing money to pay for higher public spending, such … Continue reading No, the government still hasn’t found a ‘magic money tree’!