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Farhi, Maryse
Year of Publication: 
Series/Report no.: 
Texto para Discussão 2429
Abstract (Translated): 
The recent financial crisis shed a new light on issues that, previously, were not perceived as serious or important. It highlighted the close ties between fiat money and government bonds denominated in it that imply a strong relationship between Treasury and Central Bank. Two ill-conceived views of the "new consensus" on money that had turned into taboos were also put in evidence. The first, derived from the quantitative theory of money, concerns the rejection of unsterilized monetary expansion; the second, directly related to the neoliberal ideology, prohibits or imposes strict limits on the role of central banks in the financing of public debts.
financial crisis
monetary policy
quantitative easing
debt monetization
financial markets
Document Type: 
Working Paper

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