Friday, 13 June 2014
Adair Turner says rip up some national debt.
That’s debt in the hands of the Bank of England. See here.
That’s not the first time he has made that sort of suggestion. See here.
I suggested the same in a letter in the Financial Times about a year ago. And others have made the same suggestion.
Also that idea is kind of Modern Monetary Theory compatible, at least in that Warren Mosler suggested abolishing national debt: the only liability issued by the government / central bank machine being base money.