UPDATE 9 February 2009 @14:50 (12:50 GMT):
I am leaving the economic idealogy for the economists themselves, but this bit by Steve Keen fits quite well with the Liquidity Economics lecture "Evil is the root of all money" by Nobuhiro Kiyotaki, London School of Economics, and John Moore, Edinburgh University and London School of Economics, we touched a week ago:
"Thus causation in money creation runs in the opposite direction to that of the money multiplier model: the credit money dog wags the fiat money tail. Both the actual level of money in the system, and the component of it that is created by the government, are controlled by the commercial system itself, and not by the Federal Reserve. Central Banks around the world learnt this lesson the hard way in the 1970s and 1980s when they attempted to control the money supply, following neoclassical economist Milton Friedman’s theory of “monetarism” that blamed inflation on increases in the money supply....
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