Following a request I have now reminded myself of the so called Bradbury pounds. It is a very similar device to creating money and buying gilts through the Bank of England, a nationalised bank which is therefore backed by and working with the Treasury. The authorities do not think it would be a good idea to print more money now, as it could prove inflationary. When they did choose to print they did so by a different route, which did not make a lot of difference to the idea. Buying up government bonds allowed them to spend more in the public sector without facing a debt or interest rate constraint on their spending.
About John Redwood
John Redwood won a free place at Kent College, Canterbury, He graduated from Magdalen College Oxford, has a DPhil and is a fellow of All Souls College. A businessman by background, he has been a director of NM Rothschild merchant bank and chairman of a quoted industrial PLC.
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