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Post-Covid economics: How the virus could kill off our damaging debt delusions

The government is lending to itself, via a circuitous route through the money men. Cut them out, and we could banish austerity

By Geoff Crocker  

The right hand of the Treasury is borrowing from the left hand of the Bank of England (pictured). Photo: Anthony Palmer / Alamy Stock Photo

By accident rather than design, the way governments and their central banks around the world have funded Covid programmes has opened the door to a new paradigm in the way we run our economies. The pipe dream of direct financing by sovereign money—or debt-free government funding of social needs—has become an overnight reality. Here is the story of how it happened in the UK, and how it could bring about a very different future for public services and life opportunities.

UK government expenditure on the various Covid programmes—including furlough, self-employed support, emergency benefit increases and all manner of…

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