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.
