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Monetizing the Debt - Bus Driver Simple
1 year ago
105
A bus driver simple explanation of Monetizing Federal Debt. If you geek out on this kind of stuff there’s minutiae in the links below.
Monetizing the Debt, by Daniel L. Thornton https://files.stlouisfed.org/files/htdocs/publications/es/10/ES1014.pdf
I found this a good explanation of the mechanics behind the Fed monetizing debt, though the purpose of the paper is to argue definition of the term with respect to intent. Just know this, when the Fed monetizes, inflation goes up.
Debt Monetization: The Good, The Bad, And the Ugly, by Sohaib Shahid, Senior Economist TD Bank. This is more politically based and with a softer approach. The important part here is The Bottom Line, at the end.
https://economics.td.com/gbl-debt-monetization
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