Which money supply?

Alan says:
August 23 2020 at 5:20 pm
OK, so what happens if the government prints £1.5trn or so of new money to pay ooff all it’s debt, then pays not interest on those reserves.

The broad money supply is about £2.5trn at the moment, so will have instantly increased it by 60%. The base money supply is only £100bn.

What do you think happens to the value of the Pound and to inflation if you dramatically increase the money supply by over 50% overnight?

I’ll wait for your response before making some other points.

Richard Murphy says:
August 23 2020 at 7:16 pm
Nothing at all

Gilts and NSI are effectively already in money supply as they are liquid

So as I say, nothing changes

M0, M3 and M4 and all the rest are different things. With different effects upon inflation. Something which anyone – unlike Snippa – commenting upon debt and money should know.

14 thoughts on “Which money supply?”

  1. @BraveFart

    Zoe does at least write the reason for her upset. She looks at her ugly mug and doesnt like it. The rest is just a symptom I expect

  2. Dennis, Pointing Out The Obvious

    Like so many Guardianistas, Zoe manages to zero in on the important stuff.

    Much like Richard Murphy, in fact.

  3. If we’re getting blue passports now, I think it’s time my old nasty eu one “accidentally” went through the wash.

    Shame we still don’t get the proper hardback ones, but not having the “Ve haff vays off makink you european” design is a good start.

  4. The comments to that article by Williams are a joy to behold. The fuckers don’t half hate the U.K. And Williams was beaten mercilessly with the ugly stick.

  5. Dennis, Tiresome Denizen of Central Ohio

    Actually, Alan did. He made enough of them to get this:

    I have done none of the things you claim

    Please stop lying

    Or I will block you henceforth to save your own embarrassment at being unable to read and comprehend what I actually said, including that this was simply a thought experiment

  6. He’s a spineless cunt. Covering his flabby arse by referring to this turgid pap as a “thought experiment”. By its very definition it demands to be analysed and questioned but ShitProf wants it both ways. Doesn’t allow sensible comment by smearing those that question and at the same time resorting to call it a thought experiment. Pity the students he taught. What a charlatan.

  7. 2016: “The colour of the UK passport doesn’t matter. How stupid are you?”

    2020: “Ugh, I hate this blue passport. Why can’t I get a pink one?”

  8. So Much For Subtlety

    If Zoe doesn’t like her new British passport I suggest the easiest solution is for her to fuck off somewhere else she feels more comfortable.

    Preferably not Portugal. I like the Portuguese. And of course …

    Off topic: I am not a big fan of very Gay gossip sites. Or gossip in general. Or Gays for that matter these days. But I will make an exception this once. One such website has some nice gossip about everyone’s least favorite former Royal and Ginger Mug her paramour de jour:


    How accurate is it? Quite likely for one of them I reckon. I would love, absolutely love, to see Harry take the knee. At this point could it get any worse?

    They also assert elsewhere that Meaghan adopted some pound dogs to great fanfare. But she has quietly dumped them in Canada.

  9. The people’s flag passport is deepest red
    It shrouded oft our martyred dead
    And ere their limbs grew stiff and cold
    Their hearts’ blood dyed in every fold…

  10. I see Spud is reduced to signing his letters to the Guardian as

    “Richard Murphy Visiting professor, University of Sheffield”

    Presumably his City university gig has finally come to an end. I wonder what City University got out of the appointment, apart from some no doubt egotistical and poorly presented lectures.

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