The Bank of England has agreed temporarily to finance government borrowing in response to COVID-19 if funds cannot immediately be raised from debt markets, reviving a measure last used to any large degree during the 2008 financial crisis.
Britain's government typically borrows money direct from markets through bond issuance, and this week financial markets showed a strong appetite to fund more than 10 billion pounds of government bonds, some at record-low yields.
Bank of England to temporarily finance UK government spending
This is what the Fed has already been doing since September 15 2019....
ReplyDeleteCan you describe the direct or indirect financing of US gov't?
ReplyDelete