Economics resources (MMT +PCS)

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Re: Economics resources (MMT +PCS)

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Re: Economics resources (MMT +PCS)

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Re: Economics resources (MMT +PCS)

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Re: Economics resources (MMT +PCS)

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https://www.news.com.au/finance/economy ... 44528f13ec


During the questioning Centre Alliance Senator Rex Patrick asked for the RBA chief to “just help me out with a bit of 101 monetary policy.”

Asked to explain where the RBA got its money from, Dr Lowe explained he could create it “out of thin air.”

“This is the beauty of central banking. Central banks are unique entities and they can create money,’’ he said.

“We are the one entity in the country that can create money just out of nothing.

“So, that’s why it’s very important the governance around the process is very strong. Obviously, that could be abused if you just created money out of thin air to finance government expenditure without checks and balances.”

Senator Patrick responded that it “sounds like a good job.”
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https://www.aph.gov.au/Parliamentary_Bu ... /&sid=0001

Senator PATRICK: Just to help me with a bit of 101 monetary policy: you said that you have borrowed $50 billion from government through the bond market and, I think, $19 billion through the international market. Is that what you said?

Dr Lowe : No. The Reserve Bank doesn't borrow money. We bought, in the secondary market, $50 billion of government bonds, issued by both the states and territories and the federal government. To date, we've lent $5 billion to the banks. We're prepared to lend the banks up to $100 billion. So the Reserve Bank hasn't borrowed from anyone; we're the ones buying and lending.

Photo of MPSenator PATRICK: Sure. You mentioned $19 billion in a bond sale.

Dr Lowe : The AOFM issued a bond two weeks ago and raised $19 billion. There was demand for maybe $50 billion or $60 billion. It's not the Reserve Bank doing that; it's the financing arm of the Treasury, the AOFM.

Photo of MPSenator PATRICK: In terms of the government making money available for things like the JobKeeper program, that's a separate activity to what the Reserve Bank is doing. You're trying to provide liquidity to the financial system. The source of your money to do that is what?

Dr Lowe : The source of the Reserve Bank's money—this is the beauty of central banking: central banks are unique entities in that they can create money. When we want to buy a government bond from a pension fund, the way we pay for that is credit—if you buy it from a bank—at the bank's account at the Reserve Bank. We are the one entity in the country that can create money just out of nothing. That's why it's incredibly important that the governance around that process is very strong, and that, as I said in response to Senator Whish-Wilson's question, the separation of monetary and fiscal policy is kept. We have seen, where that has not been maintained, that it can be abused—creating money out of thin air and financing government expenditure without checks and balances.

Photo of MPSenator PATRICK: It sounds like a great job, if you don't mind me saying!
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Re: Economics resources (MMT +PCS)

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Tell us how you really feel about climate stuff alan kohler

https://thenewdaily.com.au/finance/fina ... DxbKfSSa2Y
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