Monetary Financing: A Response to Silke Tober

Abstract

In the July/August issue of Intereconomics, Silke Tober criticised a proposal put forth by Andrew Watt to solve the euro crisis through the use of monetary financing of the public sector. Tober argued that there are valid reasons to keep monetary and fiscal policy separate from one another and that Watt’s proposal blurred the line between the two policy areas. Here, Watt responds to his critic, followed by a reply from Tober.