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The RBA has directed the Australian government to spend its way out of the crisis, but warns there’s no ‘free lunch’ in printing money – Forex Factory

The RBA has directed the Australian government to spend its way out of the crisis, but warns there’s no ‘free lunch’ in printing money – Reserve Bank governor Philip Lowe has given the Morrison government the green light to increase debt levels and lock in a …

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From businessinsider.com.au
Reserve Bank governor Philip Lowe has given the Morrison government the green light to increase debt levels and lock in a budget deficit this Thursday of more than $200 billion to support the economy during its recovery from the virus crisis. But the governor rejected the idea the central bank should directly fund government spending by printing money. Dr Lowe said the government’s $20.4 billion extension of the JobKeeper and JobSeeker scheme, worth about 1 per cent …

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