Quick answer for the busy reader: using central bank money to finance government spending, yes we are, and no it doesn’t. Governments around the world have ordered whole industries to cease production, and people to stay at home, in an effort to contain the spread of the virus that causes COVID-19. At the same time, fiscal packages have been put in place to support those businesses and those households who have seen their incomes fall – in some cases to...

What is monetary financing, are we doing it, and if so does it matter?