Philip Diehl: Here’s the text of an email I just sent to Ezra Klein commenting on an interview with former Treasury chief of staff Mark Patterson that was published on his blog yesterday afternoon.Monetary Realism
Fmr. Mint Director Philip Diehl explains the Coin to Ezra Klein
Posted by beowulf
Diehl: As co-author of the law, I happen to believe minting the coin is fully consistent with the law, and I take comfort that Laurence Tribe agrees.
"Chairman Bernanke...has already created $3 trillion out of thin air through QE, and he might well create another trillion through QE before the Fed finally turns off the spigot. If you’re willing to employ unprecedented monetary tools to prevent another great depression, do you draw the line at the TDC? As a matter of fact, unwinding a TDC will be much easier and less risk-prone than unwinding $3+ trillion in QE."
ReplyDeleteOops! Treasury net spending and Fed swapping assets are NOT the same!