tag:blogger.com,1999:blog-2277215496195926573.post8638192769923346825..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: The ECB’s flawed negative interest rate policy bolsters the arguments for MMT.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-65591252874896334482014-02-16T02:02:07.745-08:002014-02-16T02:02:07.745-08:00If I’ve got you right, then I agree. Milton Friedm...If I’ve got you right, then I agree. Milton Friedman and Lawrence Kotlikoff advocated a system (which is a variation on Positive Money’s system) where real saving and investment (as opposed to storing up bits of paper called “pounds sterling”) is done by what are in effect unit trusts, rather than banks.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-10905926170363075142014-02-15T14:22:44.279-08:002014-02-15T14:22:44.279-08:00To offset economic stagnation, the objective is to...To offset economic stagnation, the objective is to increase aggregate demand. But unless you increase goods & services at the same pace, you end up shooting yourself in the foot. <br /><br />The money stock can never be managed by any attempt to control the cost of credit. Proper monetary policy would be just to get the commercial banks completely out of the savings business. This would redirect the flow of savings back through the non-bank lending/investing sector (where savings are matched with investment). Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.com