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Central Banks Cancelling Government Debt Is No Panacea


Feb 20 2021, 10:34 AM
February 20 2021, 10:34 AM
February 20 2021, 10:34 AM
Recently, more than a hundred European economists, including such luminaries as Thomas Piketty, called for the European Central Bank to write off a chunk of government debt that it holds. The idea of central banks cancelling government bonds they have come to hold as a result of their large-scale quantitative easing has a certain superficial appeal. However, it reflects a fundamental misunderstanding of what QE is, and diverts attent.
Recently, more than a hundred European economists, including such luminaries as Thomas Piketty, called for the European Central Bank to write off a chunk of government debt that it holds. The idea of central banks cancelling government bonds they have come to hold as a result of their large-scale quantitative easing has a certain superficial appeal. However, it reflects a fundamental misunderstanding of what QE is, and diverts attention from considering more f ....

Thomas Piketty , European Central Bank , Government Debt , Central Bank , Quantitative Easing , Debt Cancellation , Government Bonds , ஐரோப்பிய மைய வங்கி , அரசு கடன் , மைய வங்கி , கடன் ரத்து , அரசு பத்திரங்கள் ,