full transcript
"From the Ted Talk by Michael Metcalfe: We need money for aid. So let’s print it."

Unscramble the Blue Letters

How rksiy is this? Well, this involves the creation of money to buy godos, not assets. It sounds more inflationary already, doesn't it. But there are two iatnomrpt mitigating ftoacrs here. The first is that by doiiefnitn, this money printed would be senpt orsevaes. So it's not obvious how it leads to inflation in the country doing the actual printing unless it ldeas to a currency dproetaciein of that country. That is unlikely for the second reason: the scale of the money that would be pinterd under this shmcee. So let's think of an example where Print Aid was in place in the U.S., U.K. and Japan. To match the aid payments made by those goeevtrnmns over the last four years, Print Aid would have generated 200 billion dollars' worth of extra aid. What would that look like in the context of the increase in the money stock that had already happened in those countries to save the financial system? Are you read for this? You might sulggrte to see that at the back, because the gap is quite small. So what we're saying here is that we took a $3.7 trillion gamble to save our financial systems, and you know what, it paid off. There was no inflation. Are we really saying that it's not worth the risk to print an extra 200 billion for aid? Would the risks really be that different? To me, it's not that clear. What is clear is the impact on aid. Even though this is the prtiinng of just three central banks, the global aid that's given over this period is up by almost 40 percent. Aid as a proportion of national income all of a sudedn is at a 40-year high. Now, we don't get to 0.7 percent. Governments are still incentivized to give. But you know what, that's the point of a matching scheme.

Open Cloze

How _____ is this? Well, this involves the creation of money to buy _____, not assets. It sounds more inflationary already, doesn't it. But there are two _________ mitigating _______ here. The first is that by __________, this money printed would be _____ ________. So it's not obvious how it leads to inflation in the country doing the actual printing unless it _____ to a currency ____________ of that country. That is unlikely for the second reason: the scale of the money that would be _______ under this ______. So let's think of an example where Print Aid was in place in the U.S., U.K. and Japan. To match the aid payments made by those ___________ over the last four years, Print Aid would have generated 200 billion dollars' worth of extra aid. What would that look like in the context of the increase in the money stock that had already happened in those countries to save the financial system? Are you read for this? You might ________ to see that at the back, because the gap is quite small. So what we're saying here is that we took a $3.7 trillion gamble to save our financial systems, and you know what, it paid off. There was no inflation. Are we really saying that it's not worth the risk to print an extra 200 billion for aid? Would the risks really be that different? To me, it's not that clear. What is clear is the impact on aid. Even though this is the ________ of just three central banks, the global aid that's given over this period is up by almost 40 percent. Aid as a proportion of national income all of a ______ is at a 40-year high. Now, we don't get to 0.7 percent. Governments are still incentivized to give. But you know what, that's the point of a matching scheme.

Solution

  1. definition
  2. goods
  3. factors
  4. governments
  5. printing
  6. spent
  7. leads
  8. sudden
  9. struggle
  10. depreciation
  11. printed
  12. scheme
  13. overseas
  14. important
  15. risky

Original Text

How risky is this? Well, this involves the creation of money to buy goods, not assets. It sounds more inflationary already, doesn't it. But there are two important mitigating factors here. The first is that by definition, this money printed would be spent overseas. So it's not obvious how it leads to inflation in the country doing the actual printing unless it leads to a currency depreciation of that country. That is unlikely for the second reason: the scale of the money that would be printed under this scheme. So let's think of an example where Print Aid was in place in the U.S., U.K. and Japan. To match the aid payments made by those governments over the last four years, Print Aid would have generated 200 billion dollars' worth of extra aid. What would that look like in the context of the increase in the money stock that had already happened in those countries to save the financial system? Are you read for this? You might struggle to see that at the back, because the gap is quite small. So what we're saying here is that we took a $3.7 trillion gamble to save our financial systems, and you know what, it paid off. There was no inflation. Are we really saying that it's not worth the risk to print an extra 200 billion for aid? Would the risks really be that different? To me, it's not that clear. What is clear is the impact on aid. Even though this is the printing of just three central banks, the global aid that's given over this period is up by almost 40 percent. Aid as a proportion of national income all of a sudden is at a 40-year high. Now, we don't get to 0.7 percent. Governments are still incentivized to give. But you know what, that's the point of a matching scheme.

ngrams of length 2

collocation frequency
central banks 6
aid payments 5
international aid 4
print aid 3
overseas aid 3

Important Words

  1. actual
  2. aid
  3. assets
  4. banks
  5. billion
  6. buy
  7. central
  8. clear
  9. context
  10. countries
  11. country
  12. creation
  13. currency
  14. definition
  15. depreciation
  16. extra
  17. factors
  18. financial
  19. gamble
  20. gap
  21. generated
  22. give
  23. global
  24. goods
  25. governments
  26. happened
  27. high
  28. impact
  29. important
  30. incentivized
  31. income
  32. increase
  33. inflation
  34. inflationary
  35. involves
  36. japan
  37. leads
  38. match
  39. matching
  40. mitigating
  41. money
  42. national
  43. obvious
  44. overseas
  45. paid
  46. payments
  47. percent
  48. period
  49. place
  50. point
  51. print
  52. printed
  53. printing
  54. proportion
  55. read
  56. risk
  57. risks
  58. risky
  59. save
  60. scale
  61. scheme
  62. small
  63. sounds
  64. spent
  65. stock
  66. struggle
  67. sudden
  68. system
  69. systems
  70. trillion
  71. worth
  72. years