tag:blogger.com,1999:blog-2761684730989137546.post482701176488511286..comments2024-03-29T09:32:34.853-04:00Comments on Mike Norman Economics: The Bank of England Investigates Credit Cycles and Macro-Prudential Policymike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-70639173683351106722011-03-18T16:32:39.198-04:002011-03-18T16:32:39.198-04:00The authors of the BoE paper are very unsure as to...The authors of the BoE paper are very unsure as to whether any effective remedies are available. See their last paragraph.<br /><br />My question to them is “what’s wrong with full reserve banking?”. They don’t mention it. <br /><br />Booms and busts occur because commercial banks create money or credit just when they shouldn’t: during booms. Then they destroy money just when they shouldn’t during recessions. Under FR banking, they couldn’t do this.<br /><br />Will someone tell me what’s wrong with FR banking? Milton Freidman advocated it, so FR banking is not a crank idea. Friedman’s paper is here (See p. 247).<br /><br />http://nb.vse.cz/~BARTONP/mae911/friedman.pdfRalph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-6625191866676161472011-03-18T16:30:20.184-04:002011-03-18T16:30:20.184-04:00This comment has been removed by the author.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com