Direct cash transfers to households: the Bank of England’s response to COVID-19 and the end of orthodoxy

Direct cash transfers to households: the Bank of England’s response to COVID-19 and the end of orthodoxy

With the Bank of England likely to announce a further £200bn of monetary economic stimulus soon to combat the economic impact of the coronavirus crisis, Caroline Bentham argues they should think carefully about what they do with the money. She makes the case for a different design of central bank monetary stimulus – direct money transfers to households – and explains how this would work.

The coronavirus crisis has been a time of unprecedented change and upheaval that has left few untouched. While the immediate impact has been devastating for many, with change comes opportunity for review and progress. […]

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