In effect this means is that the Bank of England has accepted that modern monetary theory works exactly as people like me have been saying for some time. As this note suggests, the government can always spend whatever it wishes simply by deciding to do so. And as we have always said, it can do so because it has the power to instruct its central-bank to fund any sum that it wishes to spend. And tax need not ever be involved in this process.
That’s simply monetisation of fiscal policy. Been known about for a long, long time.
The reason we’ve not done it more recently is that past episodes of when we have did not work out well. John Law perhaps, more recently Zimbabwe and Venezuela. The reason being that telling politicians they can spend as much as they like does not work out well.