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So "loanable funds" creates no GDP growth so some money creation is good and the required rate is not likely to be the mining rate of gold so bug off Mises and Rothbard.
In addition, let's assume that endogenous money creation is good. Then the question is "lent into existence or spent into existence?" The former is clearly unstable so we are left with the later.
As far as "unstable", if you look at how our govt is currently transitioning to doing it, it could become "stable" but probably still unjust...
Our govt is apparently transitioning towards doing direct "lending" instead of going thru our fiscal agents "the bankers"...
So we can yoke up a net liability cohort and feed transfer payments over to another cohort who then personally spends these balances on provision produced by people in the net liability cohort who have to work to obtain balances to make the liability payments...
This could be "stable" per se, as there would never come a "Minsky Moment", but not good policy imo...
2 comments:
So "loanable funds" creates no GDP growth so some money creation is good and the required rate is not likely to be the mining rate of gold so bug off Mises and Rothbard.
In addition, let's assume that endogenous money creation is good. Then the question is "lent into existence or spent into existence?" The former is clearly unstable so we are left with the later.
F.,
As far as "unstable", if you look at how our govt is currently transitioning to doing it, it could become "stable" but probably still unjust...
Our govt is apparently transitioning towards doing direct "lending" instead of going thru our fiscal agents "the bankers"...
So we can yoke up a net liability cohort and feed transfer payments over to another cohort who then personally spends these balances on provision produced by people in the net liability cohort who have to work to obtain balances to make the liability payments...
This could be "stable" per se, as there would never come a "Minsky Moment", but not good policy imo...
rsp,
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