Adair Turner argues we should use newly created money to finance - TopicsExpress



          

Adair Turner argues we should use newly created money to finance government spending in order to increase demand without also increasing household debt. Many responses treat this proposal as if it were a form of Zimbabwe-style economics. But there is nothing exceptional about the creation of money: new money is created every single day. As the Bank of England recently explained in their March 2014 Quarterly Bulletin: “Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.”
Posted on: Wed, 12 Nov 2014 21:05:00 +0000

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