Barclays Goes There – Central Bank Debt Forgiveness

Central Bank Debt Forgiveness a serious possibility? One big Investment Bank asks that question. Despite unprecedented monetary stimulus, inflation has remained subdued, Barclay’s Macro Economist Michael Gavin notes in an October 31 report. Is Milton Friedman’s annotated “term helicopter” money and the related concept of central bank debt forgiveness a viable alternative to raise the dead that is inflation and manage the unmanagable? Or does an economy doing “so so” at 5% unemployment and reasonably strong GDP growth need to engage in what include radical concepts such as central bank monetary debt forgiveness? We’re not there yet, but Barclays gives…