Thanks to Warren Mosler for these quotes. Got them from his blog.
|Don Kohn (Former FRB Vice Chair):”I know of no model that shows a transmission from bank reserves to inflation”.|
Vitor Constancio (ECB Vice President): “The level of bank reserves hardly figures in banks lending decisions; the supply of credit outstanding is determined by banks’ perceptions of risk/reward trade-offs and demand for credit”.
Charlie Bean (Deputy Governor BOE): in response to a question about the famous Milton Friedman quote “Inflation is always and everywhere a monetary phenomenon”: “Inflation is not always and everywhere a monetary base phenomenon."
Of course, don't expect these things to be picked up by the media, academic economics, Wall Street, Congress or even Bernanke. The Fed, QE, monetary and fiscal policy have all become politicized and telling the truth about QE or deficits, does no good for those who are running the show.