This article by Mark Blyth and Erik Lonergan in the latest Foreign Affairs issue makes the case that central banks should issue money directly to citizens as a countermeasure whenever there is a threat of recession.
It echoes arguments that many Feasta members have been making for some time. See for example Richard Douthwaite’s 2011 article “Deficit Easing: and alternative to severe austerity programmes in the Eurozone”. The FAQs at the end of Richard’s article are particularly helpful as he succinctly explains why inflation should not be considered a significant threat in the current economic context.
The comments thread on the Foreign Affairs article is well worth a look as well. To his credit, co-author Erik Lonergan took the time to answer some of the criticisms made in comments and there is some very interesting discussion there.
Note: Feasta is a forum for exchanging ideas. By posting on its site Feasta agrees that the ideas expressed by authors are worthy of consideration. However, there is no one ‘Feasta line’. The views of the article do not necessarily represent the views of all Feasta members.