Your English writing platform
Discover LudwigExact(3)
Even if monetary finance was more likely to boost inflation than the exchange of debt for interest-bearing perpetuities, this is hardly an argument against it: it is only an argument for going more slowly.
There is indeed the obvious danger that governments might easily become addicted to monetary finance to pay for private and public spending, which is why it is unlikely to be tried openly unless economic conditions worsen significantly.
AT: Monetary finance is like a medicine, which, taken in small quantities, can be very valuable, and taken in large quantities, is toxic.
Similar(57)
"The treaty forbids monetary financing," he said.
The ECB says a rollover would amount to illegal monetary financing.
Covert monetary financing may sometimes be the least of several evils.
For critics the policy is tantamount to outright monetary financing of governments.
Opposition to the ECB action is usually made on the ground of monetary financing or inflation.
Known as overt monetary financing, this idea is gaining support among leading economists like Adair Turner.
The bank is hostile to anything that smacks of monetary financing — printing money to finance governments' deficits.
An idea that is gaining traction is that monetary and fiscal policy could work together to deliver "monetary financing".
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com