There may be constraints for an economy that operates under a currency board, but a decision by the HK government to expand the money supply in the form of a one-off payment of roughly USD 1,200 may end up being one of the most interesting...
scmp.com/news/hong-kong… via @scmpnews
scmp.com/news/hong-kong… via @scmpnews
@SCMPNews ...and useful experiments in modern monetary history. Rather than boosting demand indirectly, as central banks now do, by raising the value of assets (which mainly benefit the rich, who consume small shares of any increase in income), it would boost income among ordinary...
@SCMPNews ...people and this, in turn, could set off a bigger consumption boost in a way that raises employment, business profits, and, ultimately, savings that can be directed into business investment.
The standard arguments against these kinds of monetary policies are a)that they...
The standard arguments against these kinds of monetary policies are a)that they...
@SCMPNews ...are inflationary, but given weak global demand I really don’t think inflation is currently the thing we have to worry most about, and b)that they just redistribute income, but all central bank policies redistribute income, so the question must be what kind of income...
@SCMPNews ...redistribution is socially and economically optimal. In fact this may be one of the few ways left for monetary policy to address demand side problems.
