“We don’t actually know right now if some of the support so far is going to do the trick,” she continued.
“Do you think we need to reframe our perception of debt?” Nina asked. “We’ve been conditioned over the past decade as a bad thing but actually it’s a necessity at the moment to keep things going.”
“There is no other option unfortunately,” Vicky said. “Interesting thing the market has been willing to lend to us at low interest rates, not just in the UK but more generally.
“The good thing in places like the UK, like the US, like Japan, like the EU – which is doing it very aggressively as well – there’s been central banks behind it prepared to put extra liquid into the system themselves and buying up government debt which is being issued so that if anyone has any concerns about assisting the government in its bond-selling attempts then they have no real worry because there’s a bank behind it, a central bank which is going to buy those bonds off if you don’t want to hold them for a period of time.
Published at Sun, 28 Jun 2020 06:25:00 +0000