Once-fringe ideas in economic theory are now nearly official policy as government borrowing surges and the Federal Reserve signals it could buy unlimited debt. “Once the central bank buys them (the bonds), it’s as if the Treasury never issued them in the first place,” said Dr. Kelton, “For all intents and purposes, … Continue reading How the Government Pulls Coronavirus Relief Money Out of Thin Air – The New York Times

The UK has become the first country to embrace the monetary financing of government to fund the immediate cost of fighting coronavirus, with the Bank of England to directly finance the state’s spending needs on a temporary basis. The move would allow the government to bypass the bond market until the Covid-19 pandemic … Continue reading Bank of England to directly finance extra government spending

In the face of the pandemic, Denmark is effectively nationalizing private payrolls, in contrast to the patchwork American system. The US has the capability to bring the economy roaring back but only if we make sure that small businesses and the workforce are made As whole as possible. And this article points … Continue reading The Nordic Way to Economic Rescue – The New York Times

When all of this is behind us, to the extent that it ever can be, let’s not forget what we’ve learned: Congress knows how to spend money when it wants to. Will be helpful when it comes time to address climate change. Source: $2 Trillion Coronavirus Stimulus Nullifies “How Will You Pay … Continue reading $2 Trillion Coronavirus Stimulus Nullifies “How Will You Pay for It?” Question

Even deficit hawks like Joe Biden know that when faced with the genuine prospect of annihilation, the only adequate response is to do whatever it takes to prevent it. We’ve done it before, we can do it again. And money is no object at this point. Source: We Can Afford to Beat … Continue reading We Can Afford to Beat This Crisis | The Nation