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Federal Reserve Chairman Bernanke's statement in 2011 about quantitative easing (QE) not being debt monetization has been contradicted by the significant increase in the balance sheet since then. Various experts have differing opinions on whether QE constitutes debt monetization, with some arguing it involves the Fed printing money to finance the government, while others emphasize the direct lending aspect without market intermediation. The concept of debt monetization is explained as a government printing money to repurchase its own debt, potentially leading to inflation or hyperinflation.
QE is not monetization. Monetization is a central bank directly lending to the fiscal authority without going thru market pricing or market intermediation, usually when the fiscal authorities have lost market access. Ppl angry at central banks for ideological/business model… https://t.co/DuXY6SnWGN
That nuance might be true in theory but its definitely not true in practice... purchase of govt debt by credit providers is monetization https://t.co/Os2ORK8SAD
QE is not monetization. Monetization is a central bank direct lending to the fiscal authority without going thru market pricing or market intermediation, usually when the fiscal authorities have lost market access. Ppl angry at central banks for ideological/business model… https://t.co/DuXY6SnWGN