Monday, September 24, 2012
Bill Mitchell — Fear of inflation scales new heights
Contains some good quotes from the ECB about the endogenous nature of money such that central bank reserves function to provide liquidity for clearing transactions after netting, and changes in the amount of base money neither influence credit extension by banks nor affect the money supply, although changes in the amount of base money will affect the interest rate unless the central bank intervenes with monetary policy to set the rate it desires through open market operations or payment of interest on reserves. Just as MMT has been saying all along.
Bill Mitchell — billy blog
Fear of inflation scales new heights