Snigger: even Willy Hutton becomes a monetarist in the end

But truth must be faced. Britain should provide a lead – both for its own economic fortunes and to set the new international standard. As a minimum it should announce a new programme of quantitative easing, in effect printing money; insist the Bank of England uses the money it prints to buy the broadest range of private debt; and immediately replace the 2% inflation target with a target for the growth of money GDP – so getting Britain off the hook of its unpayable private debts.

Bugger that borrowing more to spend more, let\’s exp[and the money suppply and inflate our way out.

Yes, this is monetarism, not the monetarism we\’re usde to but it is that all the same. A monetary solution to our woes, not a fiscal one.

6 thoughts on “Snigger: even Willy Hutton becomes a monetarist in the end”

  1. Hmm, not quite sure how destroying private savings is going to encourage people to save more and consume less. However, it will allow Will the opportunity for more articles complaining about Britain’s “consumer culture”.

  2. So the Bank will print money and let me pay off my mortgage with it. I’m still unclear on your argument below (in Polly Toynbee piece) – I think your argument is I won’t spend more money? Why is that?

  3. Other Rob: private savers aren’t exactly having a great time of it right now anyway, what with derisory interest rates and a plummeting stock market. Sure, short-run effects of QE would be bad for savers, but if QE can kick-start growth or prevent further panics, it’s probably a good thing for everyone.

  4. Since my teenage years I’ve wanted to hang every fucker who has said “Britain should provide a lead”.

  5. What does he mean by “the broadest range of private debt”? Mortgages? Corporate loans? He surely doesn’t just mean traded debt securities. That’s what the Bank of England bought in the previous round of QE and it didn’t exactly have much effect, did it?

  6. JustAnotherTaxpayer

    QE worked. Look at the velocity of M4 (money GDP/M4) – it started rising right after the start of the QE program. This is what Scott Sumner calls the “hot potato” transmission mechanism; people started moving the excess supply of money around faster, thereby boosting money GDP. Good on Hutton.

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