tag:blogger.com,1999:blog-2277215496195926573.post4823039950399459448..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: The best form of peoples’ QE.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-66179554826199874692015-08-31T05:39:20.327-07:002015-08-31T05:39:20.327-07:00I agree that “Positive Money's proposals do de...I agree that “Positive Money's proposals do depend on full reserve banking”. But that doesn’t mean it’s impossible to implement parts of PM policy without other parts. In particular, I don’t see any big problems in implementing stimulus PQE style (i.e. having the state print money and spend it, and/or cut taxes) without at the same time implementing full reserve banking.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-71834349268873391642015-08-31T01:40:10.240-07:002015-08-31T01:40:10.240-07:00Surely Positive Money's proposals do depend on...Surely Positive Money's proposals do depend on full reserve banking? Their plan supposes that MPC directly controls the money supply. That wouldn't be possible if banks were still able to create new money by making new loans (of money they don't have, i.e. what happens with fractional reserve banking). For the MPC to directly and accurately control the money supply, they would need to be the only body able to create new money, so full reserve banking would appear to be an integral part of these proposals, not just an optional add-on.Bruce Ghttps://www.blogger.com/profile/09056360686702009784noreply@blogger.com