Ralph Musgrave — Martin Wolf criticises Lawrence Kotlikoff.

Martin Wolf in today’s Financial Times puts seven suggestions for improving the banking system. The fourth involves criticising Lawrence Kotlikoff’s 100% reserve banking ideas. In reference to banks, Wolf says “I accept that leverage of 33 to one, as now officially proposed is frighteningly high. But I cannot see why the right answer should be no leverage at all. An intermediary that can never fail is surely also far too safe.”

There are several mistakes in those two sentences, as follows.

Read it at Ralphonomics
Martin Wolf criticises Lawrence Kotlikoff
by Ralph Musgrave

For Bill Mitchell's take on full reserve, see 100-percent reserve banking and state banks, where Bill addresses both proposals now currently under discussion.