Proposal Archive

Review of the recession and how to end it

[Skip to the end] The problem is suboptimal output and employment which is evidence of a lack of aggregate demand.   Less important what caused the drop in aggregate demand The end of the subprime expansion in 2006 reduced the demand for housing   The wind down of the one time Q2 ...Read More

Proposal

[Skip to the end] The short version of my current alternative proposal to the TARP remains: Normalize bank liquidity by allowing Fed member banks to borrow unsecured from the Fed in unlimited quantities. Have the Fed set term lending rates out to 3 months in addition to the Fed funds rate. Extend ...Read More