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So here’s a prediction

There is not the remotest chance that any of these rep[urcahsed gilts will ever be sold back to financial markets. Nor is there ever going to be reason why they need to be so.

Well. Even MMT would say that if we get to full employment there is a chance that the increased money supply will lead to inflation. Something that is solved by reducing the money supply. Which could – not necessarily will but could – o done by selling the gilts back into the market.

You know, the same way the Federal Reserve shrank its balance sheet?

1 thought on “So here’s a prediction”

  1. A rare moment of self awareness from the fat man.

    “It is an issue to which I have been referring for more than a decade, with almost no one paying any attention…”

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