So the British Recovery Bonds:
The latest version was published here, in January, where the economic justification for this was provided.
And for those familiar with MMT, this is not of course what a pure MMT approach would suggest. It would say that there could be funding without bonds, and I agree. But, there is good reason for this alternative now.
The first such reason is that QE has created the savings pool I referred to recently, which is deeply destabilising to the economy and MMT has no answer to that. Second, that money has to be withdrawn from the economy without tax right now, and savings can do that. Third, the savings need to be non-speculative and locked down. The bond idea achieves that. These bonds address an issue we have. And that is justification enough for me.
The idea is, of course, that peeps go save in the bonds and then the money gets spent. That does not lockdown those excess savings, it mobilises them. It does not withdraw them from the economy, it injects them into it.
Murphy doesn’t even understand his own policy.