In this episode we get stuck into a topical subject: the proposal for People's Quantitative Easing (PQE) that has been suggested by the UK Labour leadership contender Jeremy Corbyn.
- Money is routinely created by central and private banks.
- What is helicopter money and why you'd use it?
- Quantitative Easing (QE) is when central bank created money is used to buy bonds, i.e. existing gov debt.
- All economists agree that investment is too low in the UK.
PQE proposal24m 15s
- Jeremy Corbyn's policy mentions PQE in passing.
- Richard Murphy's more detailed proposal.
- Criticisms of PQE
What if?1h 00m 55s
- Would Corbyn implement PQE?
- If so, what would be the implications.
References mentioned in the discussion(In reverse chronological order)
Simon Wren-Lewis - 2 Sept 2015 - Helicopter money preferable to QE
Frances Coppola - 2 Sept 2015 - Real purpose of central banks - overview of central banks, MMT, PQE and reality of election cycle
Bill Mitchell - 19 August 2015 - Embrace money financing as the norm?
Simon Wren-Lewis - 16 August 2015 - On drawbacks of Corbyn's QE
Jeremy Corbyn - 22 July 2015 - Economic vision (no mention of PQE!)
Jeremy Corbyn - 22 July 2015 - p6 of this document briefly mentions PQE
Richard Murphy's - 12 March 2015 - Original description of PQE but called Green Investment Fund
A more detailed summary of the our conversation and conclusions can be found here.