Monday, October 31, 2022

Consols, Gilt and Dutch Auction

Should Rishi Sunak issue perpetual bonds to combat UK's budget deficit? An excerpt from the Financial Times article:

"Perpetual bonds are the ideal tool to use to resolve a serious financial crisis like the present one. Not having to repay the principal provides a tremendous advantage that dwarfs the temporary cost of a high coupon. It could help solve both the housing and pension crises."















Image credit: CartoonStock
-

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Oppenheimer and Oscar Economics

This  article  is quite long, but has important modern implications.  Source: Michael Ramirez, The Gazette.

  • Budget 2019 Discussion
    How are you going to contribute to the nations in terms of closing the wealth inequality gap?
  • Malaysia and Economic Recovery
    In Tinta Minda, BERNAMA. Malay article. Excerpt: "Laporan prestasi ekonomi negara pada suku ketiga pada 2020 yang diumumkan Bank Negara...
  • Great Recession vs. Great Depression
    Please read the article by Paul Krugman in the New York Times at the link given below and give your comments as what Malaysia had experience...