What David Beckworth misses is that if quantitative easing is used to fund expansionary fiscal policy–if the government buys not long-term Treasury bonds but, rather, bridges and NIH research and the human capital of twelve-year olds–then those asset purchases are going to be permanent: you cannot unwind those transactions. Hence, by Beckworth’s logic, that policy … Continue reading Why I Am More Optimistic About Money-Financed Expansionary Fiscal Policy than About Quantative Easing