Brad DeLong — Why ‘disgorging the cash’ can undermine economic growth

Examines two JW Mason papers and controversy around them.

Mason’s research paints a grim picture. A well-functioning financial system is supposed to channel savings to their most productive use. Instead, the U.S. system, in total, seems to be more interested in getting money out of firms and into the accounts of wealthy shareholders. As a companion Roosevelt Institute report also released Friday points out, it will take pulling on multiple policy levers to reverse this kind of massive trend. It seems we need to find many levers in order to move the financial world.

WWCEG — The Equitablog
Why ‘disgorging the cash’ can undermine economic growth
Brad DeLong