[Pen-l] doubling global stimulus through SDRs (secret message for Obama entourage)

[Gernot Koehler <gko15@xxxxxxxxxxx>]

When we sum up the various national stimulus packages presently being devised in USA, Canada, Europe, etc, we are looking at about USD 1 trillion in stimulus for the world economy as a whole, give and take a few dollars. Supposing that stimulus is good, then double stimulus should be doubly good. Why not add another trillion dollars of global stimulus along the lines of the UN-cum-Stiglitz commission mentioned on pen-l recently. Financing could be through SDRs. SDRs are fiat money (like God said _  fiat light _,  and there was light). The world system could, conceivably, spit out 1 trillion of SDRs in order to finance alternative energy production in poor countries and a few hospitals and schools on the side. It stands to reason that you get more global multiplier through that venue than when you use national fiat money for balancing the books of national banks and similar ilk.

Just another view from Hyde Park corner.

Gernot

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