Recovery Bonds – The very opposite of what is needed.


The Gower Initiative for Modern Money Studies has the article Recovery Bonds – The very opposite of what is needed.

As the economist John Maynard Keynes made clear at the time, the money the government removed from circulation through offering War Bonds did not go anywhere and did not fund the war. Furthermore, with the present-day economy in a depressed state, which is likely to continue for some time to come, maybe years as our experience with the GFC showed, and made worse by economically illiterate years of austerity, this is not the moment to encourage saving. We need the exact opposite to recover and grow.

Frequently I find myself repeating what John Maynard Keynes explained. I get the feeling that people just don’t believe it when I say it. Some people may be impressed by seeing it in print from another source on the web.

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