Robert Hallfrom Stanford University in the first talk titled The Natural Rate of Interest, Financial Crises and the Zero Lower Bound:
… Every economic principles book describes how, when banks collectively hold excess reserves, the banks expand the economy by lending them out. The process stops only when the demand for deposits rises to the point that the excess reserves become required reserves and banks are in equilibrium. That process remains at the heart of our explanation of the primary channel of expansionary monetary policy …The Case for Concerted Action
Jackson Hole Symposium Starts With The Money Multiplier
Ramanan
Really.
2 comments:
The senior members of any profession have an interest in supressing new ideas: a phenomenon that afflicts economics more than other subjects, I’d guess. As Matias Vernengo put it, “the economics profession, like the others, is there to protect and reproduce the status quo.” See:
http://nakedkeynesianism.blogspot.co.uk/2013/07/why-crisis-didnt-discredit-mainstream.html
I dont know who becomes more indignant at the sight of monetarism, Ramanan or myself... ;)
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