A small, sudden devaluation

imo Biden should tweet about how the Fed can and should deliver cash grants to every American and pressure them into doing it.

Yglesias wants this.

Say $1,000 to each person, no counter balancing liability by the Fed.  That comes to a one and a half point percent devaluation of the currency.  That is again a tax on bonds which would collect principle in the devalued currency.  But it is a one time Fed tax and spend of two and a half points done overnight.   The difference is that currently the Fed tax goes to government, under Yglesias plan it would go to customer accounts.  Government would carry a fifth of the liability. All of its debt and programs would have to adjust to the sudden devaluation.  We would likely see a short term inflation spike of five points over the quarter then prices settle permanently higher by two points.

The Swamp would never survive it.