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The Dawn of Austerity - Dissent Magazine

The Dawn of Austerity - Dissent Magazine
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The central banker's new clothes


The central banker’s new clothes
May 18,2021 - Last updated at May 18,2021
LONDON Since March 2020, the Bank of England (BoE) has bought £450 billion ($639 billion) of UK government debt through its so-called Asset Purchase Facility. Virtually all of this was new debt issued by the government since the start of the COVID-19 crisis. The BoE’s purchases look like a thinly veiled attempt to use quantitative easing (QE) to finance the government’s deficit and ensure low borrowing costs. Is this still monetary policy, or is the central bank conducting fiscal policy by the back door?
The BoE claims that there is no connection between monetary and fiscal policy, and that its asset purchases are aimed only at meeting its mandated 2 per cent inflation target. The fact that the amount of the bank’s asset purchases since March 2020 just so happens to match the government’s deficit over the same period is no more than a coincidence. To claim otherwise that the BoE i ....

United Kingdom , City Of , John Maynard Keynes , Ralph Hawtrey , Robert Skidelsky , Milton Friedman , Political Economy At Warwick University , Labour Party , Asset Purchase , British House , Political Economy , Conservative Party , Project Syndicate , ஒன்றுபட்டது கிஂக்டம் , நகரம் ஆஃப் , ஜான் மேனார்ட் கீன்கள் , மில்டன் ப்ரைட்மேன் , பொலிடிகல் பொருளாதாரம் இல் வார்விக் பல்கலைக்கழகம் , தொழிலாளர் கட்சி , சொத்து கொள்முதல் , பிரிட்டிஷ் வீடு , பொலிடிகல் பொருளாதாரம் , பழமைவாத கட்சி , ப்ராஜெக்ட் கூட்டமைப்பு ,