How To Fix The Economy: More Loans, Not Bank Reserves! 1

The Fed gauges conditions in financial markets, and the markets try to predict the Fed - is this not a circular reference?

If the current bank reserves focused policy framework can’t fix the issue of falling labor participation and money velocity, how can we solve these problems? 

A good place to start is by increasing the actual money supply, that is, by getting banks to make more loans.

While this sounds like a simple solution, reality is more nuanced.

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