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Podcast: Debunking Economics - the podcast
Episode: Who can create money to fight COVID?
Description: There’s a commonly held misconception that the Bank of England is creating extra money and pumping it into circulation through quantitative easing. In this week’s podcast Prof Steve Keen explains how QE amounts to nothing more than an asset swap – so no new money is created. The only way money can be created is through commercial banks issuing loans – something they are not doing much of – or governments running a deficit. Even the IMF is now suggesting that advanced economies should not be worried about public debt. Talking to Phil Dobbie, Steve explains the limited impact of QE and the...