"Treasury can also change tax laws to favor lending over the holding of Treasury securities"
This would certainly help with the hoarding problem, but it would take time and congressional action. Unfortunately I don't see a Democratic Congress as interested in providing banks with a special tax incentive at this time, despite its great potential.
I don't think the other regulatory powers that Treasury could utilize amount to much, which accounts for that increased possibility of higher inflation. Monetizing the debt has been used by the Fed in the past so it's the easy solution for them now, with all its negative ramifications.
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"Treasury can also change tax laws to favor lending over the holding of Treasury securities"
Nov 03 16:50 pm
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All Comments by Kinabalu »The Next Crisis Is on the Horizon [View article]
This would certainly help with the hoarding problem, but it would take time and congressional action. Unfortunately I don't see a Democratic Congress as interested in providing banks with a special tax incentive at this time, despite its great potential.
I don't think the other regulatory powers that Treasury could utilize amount to much, which accounts for that increased possibility of higher inflation. Monetizing the debt has been used by the Fed in the past so it's the easy solution for them now, with all its negative ramifications.