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Bond purchases or helicopter money is essentially the same thing. 1) The government sprays more money around in welfare and salaries than they raise through ta
by aianus 9y ago
Bond purchases or helicopter money is essentially the same thing.
1) The government sprays more money around in welfare and salaries than they raise through taxes
2) The government issues bonds
3) The central bank prints money to buy those bonds
It's equivalent to the central bank printing money to pay for welfare programs and salaries (which go to common people in the streets)
- dmichulke 9y agoI disagree, buying bonds benefits above all bond holders, read funds and investment banks. The people only get the money way down in the food chain.
- ascorbic 9y agoQE books purchases aren't about allowing the government to borrow more. In any rich country the government can borrow as much as it wants. It's about crowding out private purchases of those bonds so that those lenders will lend to businesses and people instead. I'd be willing to bet that a $1000 tax refund is more likely to be spent than an extra $1000 that banks may or may not lend to someone.