Third, our understanding of economics is changing. We now, for the first time, really understand money. We can therefore newly understand public finances and the integration of monetary and fiscal policy that I outline in my book, using QE, at least in part. And by integrating that understanding with a willingness to let the state produce, costlessly, the capital to put the economy (public and private: this is not a state only revolution by a very long way, but a state partnered one) to work the process of change can begin.
He really just doesn’t get it, does he?
If we print lots of chitties in the basement of the Bank of England then we’ve unlimited capital to do whatever we want!
He’s still not grasped that money isn’t capital. Capital is that labour, machinery, technology, that is deployed. Money is, quite seriously, just the chitties to get it moved around. We’ve not created any more labour, no more machinery, not changed technology, by printing more money.
Which is, of course, why sending more chitties off after the same resources is inflationary.