An alternative to government borrowing? Just print more money | Letter

Fawzi Ibrahim on why printing money doesn't have to cause a rise in inflation

Anne McElvoy is right (It's the economy, stupid' says the US campaign slogan. Starmer would do well to learn it, 26 December); Labour has to move beyond simply redistributive ideas, to those that move the needle on growth", but she fails to confront one essential component to achieve this. Taxation and borrowing from the private sector remain central to any government economic policy. So far, borrow to invest" has conditioned even leftwing thinkers to accept the unequal distribution of wealth.

But there is an alternative that will also aid redistribution: print and regulate. The opposition to the government printing money is that it would cause inflation by increasing demand on resources. But this is only true if private finance is allowed the same capacity to invest. If the latter's investment capability is restricted by the same amount as increased public spending, then demand for resources would remain unchanged and inflationary forces contained.