National policy responses to the Covid-19 pandemic have prompted dramatically higher levels of government borrowing in several higher-income countries, financed by further rounds of central bank asset purchases (QE). In the wings, Modern Monetary Theory (MMT) is tempting finance ministers with the notion that government borrowing can be almost limitless – provided it doesn’t cause inflation, but is it really the solution for government finance?
What about debt on the opposite end of society, at the household level? We hear about a campaign to cancel Covid-related debt and from an organisation supporting people who are drowning in debt.
You can find other videos from the 2021 Seeds of Change conference here.