At the same time as this situation has developed some long known, but disputed economic understandings have received recent endorsement as key planks for economic development. The first is that cash is, as has long been denied by many economists, is literally made out of thin air by banks, and that was how QE funding was created.
Thirdly, the IMF has confirmed inequality imposes real cost on a society, and fourthly has suggested both tax revenues and government spending play a vital role in the redistribution that provides the foundation for sustainable growth.
Good grief, the BoE did not say that cash is created by banks out of thin air. It said that broad money, or credit to give it its other name, is created by the banks. It also said that the BoE creates base money, or cash to give its other name, and that’s what QE is, the creation of base money, not broad.
And the IMF also said that modest redistribution is a good thing and that excessive is not. The dividing line between the two being, apparently, at changing market gini by more than 13 points. Given that the UK currently changes market gini by just over 13 points we’re already at the limit.
Can’t he even get his own arguments right?