The government has learned to use QE to fund the coronavirus crisis, which is all well and good except for the fact that there are significant wealth inequalities arising as a result as some in the population save substantial amounts. If we are to prevent runaway asset inflation arising a way to use those savings has to be found and they have to be used to fund constructive activity. I outline some new thinking on this issue in this video. There is much more thinking to do in this area if social justice is to exist after coronavirus.
The aim of QE – rather than the monetisation of fiscal policy – is to raise asset prices, to reduce yields, so that people go out further along the risk curve in their investments in search of income.
Commissar Kartoshke is thus trying to come up with a solution to the point of he exercise.