U.S. government legislation authorizing the Federal Reserve to create Digital Money and Digital Wallets (introduced on March 23, 2020, no other action yet taken). I expect that this legislation will be passed so that during the next economic crisis the Fed can create electronic “money” and disburse such funds to people. I believe enactment will generate inflation (which is a must with the massive debt overhang), provide funds to people, and serve as the mechanism for introducing universal basic income.
Published by markskidmore
Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times. View more posts