Interesting to see that Bond Vigilantes have resumed publication.....and are calling out the threat of long term bond yields on the pension industry in the UK as the basis for the Bank of England intervention.
Posted the below on my Facebook page today. I would add that for most of us lay people, the differentiation between QE or 'bond buying to correct market turbulence', is semantics when the main issue is that, at full employment, the markets - and journalists - now need Ministries of Productivity to publish their strategies BEFORE programmes to spend money into existance are announced.
"As the Thatcher Monetary Orthodoxy disintegrates, why instead do we now need a Ministry for Productivity? Because if you treat people with respect and assume that they are working as hard as they can, in both the private and public sectors; if you agree that the labour market is tight, with unemployment at a near record low; then you also know that no government can spend new money, in these circumstances, without causing inflation; all new spending must be directed to the measures, machines, software, infrastructure and deregulation to unleash sufficient productivity growth to offset the new spending. That is the principal lesson of MMT, Modern Monetary Theory. Stephanie Kelton is brilliant. She changed my mind. Will she change yours?"
Interesting to see that Bond Vigilantes have resumed publication.....and are calling out the threat of long term bond yields on the pension industry in the UK as the basis for the Bank of England intervention.
Posted the below on my Facebook page today. I would add that for most of us lay people, the differentiation between QE or 'bond buying to correct market turbulence', is semantics when the main issue is that, at full employment, the markets - and journalists - now need Ministries of Productivity to publish their strategies BEFORE programmes to spend money into existance are announced.
"As the Thatcher Monetary Orthodoxy disintegrates, why instead do we now need a Ministry for Productivity? Because if you treat people with respect and assume that they are working as hard as they can, in both the private and public sectors; if you agree that the labour market is tight, with unemployment at a near record low; then you also know that no government can spend new money, in these circumstances, without causing inflation; all new spending must be directed to the measures, machines, software, infrastructure and deregulation to unleash sufficient productivity growth to offset the new spending. That is the principal lesson of MMT, Modern Monetary Theory. Stephanie Kelton is brilliant. She changed my mind. Will she change yours?"