This is the third in a series of videos on why I think that the UK should move away from conventional quantitative easing towards what I call green QE.
I know that there are many who are proponents of modern monetary theory who have reservations about this suggestion. I understand why. In this video I explain what the basis of that reservation is. I then go on to suggest that since MMT is unlikely to be accepted at present as the basis for the management of the UK economy we have to live with what we can do if our greater goal is to provide the funding that is required for programmess like the green new deal which will, inevitably, be necessary and will provide the stimulus that we need to get over the crisis created by coronavirus.
So, I explain the pragmatic reason for green QE and how its underpinnings are, in any case, based on the power that MMT has, applied in a way that delivers those benefits to the best possible effect at present.
I will never be accused of delivering perfection. I am aware that theory and practice do not always coincide. Green QE may not be as good as MMT, but it is certainly a lot better than conventional QE and that compromise is one I can live with.