Don’t lose sleep over mounting government debt, Upgrading the network
Friday 3 July 2020 – Vol.11 Ed.27.6
Commentary: Don’t lose sleep over government debt
By Paul Sheard in Cambridge
The blow-out in fiscal deficits around the world triggered by the Covid-19 pandemic is leading many to ask: how are we going to pay for all of this? Surely a day of fiscal reckoning will come. That is the wrong way to look at things: government debt never has to be repaid. From a macroeconomic perspective, the size of the budget deficit should be driven by how far from full employment the economy is and how much inflationary pressure there is. The level of government debt should be a policy instrument, not a target.
Read the full commentary on the website.
DMI Journal: Upgrading the network
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Philip Middleton, chairman of the Digital Monetary Institute, and Bhavin Patel, head of fintech research at OMFIF, join John Orchard to discuss the second edition of the DMI Journal. In this issue, we take stock of the rapid development of wholesale distributed ledger technology applications in the financial sector, assess growing central bank interest in the field, and the possibilities for a wholesale central bank digital currency.
Watch the video or download the Journal.
