An explicit programme of quantitative easing (QE), which would see the SA Reserve Bank buy up to R30bn of government bonds a week, is the best way to finance the stimulus needed to support the economy through the Covid-19 crisis, says a former Treasury official.

Though there are concerns that the outright monetising of government debt could prompt inflation, QE was the “cheapest, quickest and easiest” method of financing the stimulus at the scale it is needed, according to Owen Willcox, a former Treasury official and principal consultant at Oxford Policy Management...

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