Thinks. We dare to ask. Im ashen returns here were going underground for a special lockdown episode as britain one of the worlds Top Financial Services capitals issued new budget plans got to see a former Goldman Sachs johnson a risky so knock they join the show will be getting analysis rocks of universities professor Danny Dorling in the consult and editor of the london daily mail p. S. But 1st joining me now from seafood in the sussex is the biographer of towering 20th century economist John Maynard Keynes. Welcome to going underground i want to get on to what you describe as a silent revolution going on there in this country about economics but as to this weeks budget what do you make of it continued feeling amongst commentators certainly that. We must understand the economics of a nation is the economics of a a grocery shop. Yeah well thats the thats the standard line isnt it i mean theyre not theyre not connected the purpose of the budget is to balance to concert the nation thats
International team thanks a lot for watching and have a great day. Im sure were going underground for a special lockdown episode as britain one of the worlds Top Financial Services company has issued new budget plans go to see a former Goldman Sachs John Slattery so knock they turn the show will be getting analysis rocks of universities professor Danny Dorling in the consult and editor of the london daily mail and drew pierce but 1st joining me now from seafood in the suffix is the biographer of towering 20th century economist John Maynard Keynes nord skidelsky. Welcome to going underground i want to get on to what you describe as a silent revolution going on in this country about economics but as to this weeks budget what do you make of it continued feeling amongst commentators certainly that. We must understand the economics of a nation is the economics of a grocery show. Yeah well thats the thats the standard line isnt it i mean theyre not theyre not connected the purpose of the bud
Rise above 2 percent thats of the bank of england governor says now i think he says to the chancellor youre spending too much money and therefore risking that inflation is going to go 2 percent now youve given me the mandate to keep it a 2 percent therefore if you go on spending money at the rate youre doing i will shut up interest rates. And i will shove them up to any extent necessary any extent necessary to meet my inflation target and that means the money you borrow will the cost of the money you borrow chancellor will go up and up and up and in the end un be able to afford it any longer and much of it was which of course he will do despite him being an independent governor underbelly is this corruption between the socalled independence of the governor of the bank of england chancellor issues and some people would call it cool usually between the back of the and the treasury but the banks and others to call it coordination and cooperation and and and therefore not not challenging t
Certainly that. We must understand the economics of a nation is the economics of a a grocery shop. Yeah well thats the thats the standard line isnt it i mean theyre not theyre not connected the purpose of the budget is to balance their concert the nation thats what the purpose of a governments budget is and therefore it is the only grace show up so to speak it alone has access to money and it can print so in that sense the government isnt a tool like a grocers shop a grocery shop your shop has to go to a bank if it gets into debt it borrows from bank it has to repay government to have to repay the government can borrow without limit technically it can simply print the money it wants to spend now that is a fact whether it wise to do so when you want to stop it by law from doing those kinds of things thats a different matter but it can do it and if it wants to spend 3 100000000000. 00 in supporting the economy during the cove it it will spend 300000000000. 00 and itll tell the bank of en
Kinds of things thats a different matter but it can do it and if it wants to spend 3 100000000000. 00 in supporting the economy during the cove it it will spend 300000000000. 00 and itll tell the bank of england to provide the money which is in fact what the bank of englands been doing its been financing the whole of the kovac 19 pandemic follow expenditure you say the standard view when does it come from i mean you can. Assure us all at the back of england were call the city police city of London Police and arrest the chancellor of the exchequer v. Doesnt balance the books no he wont do that the governor of the bank can go to the chancellor and say look youve given me an inflation target. Ive got to make sure that inflation doesnt rise above 2 percent better the bank of england governor says now i think he says to the chancellor youre spending too much money and therefore risking that inflation is going to go off 2 percent now youve given me the mandate to keep it a 2 percent therefor