Finance & Fury Podcast

Welcome to Finance and Fury,  Last week – talked about Goodhart's law - "When a measure becomes a target, it ceases to be a good measure." – yet central banks have made inflation the policy target – Went through permanent QE and lowering rates and cashless economy Today – talk about fiscal expansion from govs and the need for deficit monetisation (helicopter money) and final step of abandoning dollar as reserve currency – effects on economy To start - Step 3: Fiscal Expansion and Deficit monetisation The QE and lowering interests will flood banks with ‘liquidity’ = lots of money to lend out – to themselves (wall street) or main street - If this doesn’t work - government may eventually assume the role of resource allocator, through public spending financed by a permanent increase in the money stock If government spending does not help either, then helicopter money might, which is to allocate resources directly into the pockets of households – either cutting taxes or UBI Fiscal expansion – The government spen