follow expenditure you say the standard view when does it come from i mean you can. assure us all at the back of england will go all the city police city of london police and arrest the chancellor of the exchequer v. doesn t balance the books no he won t do that the governor of the bank can go to the chancellor and say look you ve given me an inflation target. i ve got to make sure that inflation doesn t rise above 2 percent that s or the bank of england governor says now i think he says to the chancellor you re spending too much money and therefore risking that inflation is going to go off 2 percent now you ve given me the mandate to keep it to 2 percent therefore if you go on spending money at the rate your 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 t
thinks. we dare to ask. i m ashen returns here we re going underground for a special lockdown episode as britain one of the world s 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 week s 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 that s the that s the standard line isn t it i mean they re not they re not connected the purpose of the budget is to balance to concert
international team thanks a lot for watching and have a great day. i m sure we re going underground for a special lockdown episode as britain one of the world s 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 week s 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 that s the that s the standard line isn t it i mean they re not they re not connected th
rise above 2 percent that s of the bank of england governor says now i think he says to the chancellor you re spending too much money and therefore risking that inflation is going to go 2 percent now you ve given me the mandate to keep it a 2 percent therefore if you go on spending money at the rate you re 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 so-called 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 no
certainly that. we must understand the economics of a nation is the economics of a a grocery shop. yeah well that s the that s the standard line isn t it i mean they re not they re not connected the purpose of the budget is to balance their concert the nation that s what the purpose of a government s 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 isn t a tool like a grocer s 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 that s 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 it l