[quote=Rich Toscano]
That’s got nothing to do with the point I was making, which was in response to your assertion that monetizing Treasuries couldn’t have a discernible effect on consumption. This isn’t a left vs right policy debate.
I was stating the FACT that monetizing Treasuries to finance a tax cut would get money into the hands of consumers (along with the FACT that Bernanke had pointed this out himself as a potential policy option). I didn’t endorse that policy as being a good idea.[/quote]
My original assertion was that monetizing Treasuries at constant deficit does not have an effect on consumption.
Monetizing Treasuries to finance tax cuts is better than buying them from investment banks, but only slightly.
