One of the runners up to Mark Carney to take over the leadership of the Bank of England said that in some circumstances it’s a good idea to permanently print money to pay off government debt.
FSA Chairman Adair Turner told the FT today that “there exist some circumstances, in which it is appropriate to take that risk.”
He said the UK isn’t one of those circumstances… but the mere mention of monetary financing would have smashed cable if he were in line for King’s throne.
Carney speaks to UK parliament tomorrow.