Coronavirus pandemic, gold and human foolishness

“Gold is a relic!” Maynard Keynes, the famous British economist of the twentieth century wrote.

Yes. Gold is a strange relic – one that continues alive in the minds of billions of people. In normal times, millions of poor people – mostly Asian, some very poor, resort to gold as a storage of value. An example: there are dozens of thousands of poor Indian widows applying their meagre savings in gold.

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Coronavirus Pandemic and Helicopter Money

The coronavirus pandemic is causing a huge contraction and high unemployment in most economies worldwide. According to the St Louis FED projections, the economic American freeze could send the unemployment rate past 32%.

This may encourage policymakers to try new strategies, including unconventional monetary finance like helicopter money, that is, the creation of money by central banks and its distribution for free to taxpayers or companies in order to solve unemployment and economic problems. Continue reading “Coronavirus Pandemic and Helicopter Money”