Krugman on monetary creation


[Skip to the end]


Still chasing shadows?

>   
>   (email exchange)
>   
>   On Wed, Oct 7, 2009 at 4:39 PM, Eric wrote:
>   
>   It’s hard to get it more backward than this:
>   

Yes, this is telling:

“The banks don’t need to sell securitized debt to make loans — they could start lending out of all those excess reserves they currently hold. ”

>   
>   He is asking good questions but with all the wrong reasoning.
>   

Agreed, thanks — waiting for the first Nobel prize that’s given to someone who actually understands basic monetary operations!


[top]