scoop.co.nz 11 Mar, 2021 01:30 am

Petition To Direct Fund The Covid-19 Recovery

Petition To Direct Fund The Covid-19 Recovery
A new petition is asking Parliament to require the Reserve Bank to directly fund the Covid recovery and other essential infrastructure, cutting out the unnecessary bank middlemen. The Reserve Bank plans to spend up to 100 billion dollars to buy ...

A new petition is asking Parliament to require the Reserve Bank to directly fund the Covid recovery and other essential infrastructure, cutting out the unnecessary bank middlemen.The Reserve Bank plans to spend up to 100 billion dollars to buy bonds on the secondary market.The Reserve Bank then buys the bonds from the investors.According to Don Richards, National Spokesperson for Positive Money NZ, "Direct funding, where the Reserve Bank buys up Treasury bonds on the primary market, would cut out the middlemen.

” There is a form of Direct Funding occurring currently with the Reserve bank creating $28 billion through its Funding for Lending programme.In the 1930’s, the Reserve Bank used its balance sheet to fund the building of tens of thousands of State Houses with little or no impact on inflation.

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