I’ve
just Googled “Rogoff Reinhart QE” and met a total blank. Kenneth Rogoff and
Carmen Reinhart seem to have written nothing about QE.
Of course I'm well aware that they will have written at least a paragraph or two SOMEWHERE on the subject. But it certainly isn't easy to find.
If
you have a decent grasp of economics you’ll know why. But if you don’t get it,
here’s the explanation.
R&R
have spent the last few years trying to scare us all witless about national
debts or the “debt overhang” as they like to call it. (It’s important to use
emotive phraseology when you’re into propaganda rather than logic.)
But
QE involves having the central bank print money and buy up the debt. Hey
presto: the debt vanishes in a puff of smoke.
But
that’s disastrous news if your reason for living is to scare everyone on the
subject of the debt, and use that as an excuse to promote austerity. So what do
you do? Well best just sweep QE under the carpet. Turn a blind eye to it.
Pretend it doesn’t exist.
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