JKH — Helicopter Recall – Fiscal Repairs Needed

The true role of accounting is fundamental to understanding these distinctions. Accounting reflects operations and operations reflect policy. If a central bank undertakes a fiscal expenditure operation, it will deliberately blow a hole in its balance sheet and create a negative capital position and a mismatched balance sheet. This activity is obviously not legitimate as a delegated responsibility for central banks. It is a usurpation of fiscal responsibility that produces a corresponding deformation of the central bank balance sheet. Accounting reflects operations and operations reflect policy. This is policy hijacking.…

Monetary Realism
Helicopter Recall – Fiscal Repairs Needed

JKH