Thursday, 5 November 2020
Quantitative and Qualitative
Rishi Sunak is preparing to extend furlough beyond December, and to make it available to Scotland, Wales and Northern Ireland, while the Bank of England is injecting an extra £150 billion into the economy. Just like that. Because they can.
Of course they can. They do fundamentally the same thing all day, every day. That is what they are for. A sovereign state with its own free floating, fiat currency has as much of that currency as it chooses to issue to itself, with readily available fiscal and monetary means of controlling any inflationary effect.
The only problem of principle in this case is the lack of democratic political control of the monetary policy. That control used to exist, but, without any manifesto commitment to do so, the Blair Government signed it away. It could, however, be taken back just as easily. I am a declared and active candidate for the parliamentary seat of North West Durham at the next General Election. Please give generously.