There is really a huge opportunity for governments to replace lending to companies in the Covid-19 crisis with equity purchases via newly founded sovereign wealth funds /Martin Wolf, FT, 6 May 2020/.
They can do the same for households due to current ultra-low interest rates.
Indeed, both governments and central banks can and should do the job because we really need more sustainable demand and stronger investment without soaring corporate and household debts.
There is a new world looming for finance where capital instead of credit is offered to all who are eligible by citizenship or corporate membership.
Re “How to escape the trap of excessive debt”
Governor Matolcsy, MNB, the Central Bank of Hungary