April 18, 2014 Leave a comment
Originally posted on Vermont Loon Watch:
Keynesian economics is on display; you wonder why wwe’re in such a mess.
7 Crazy Ideas Janet Yellen Did Not Mention, But Waiting in The Wings
In her speech at the New York Economic Club on Wednesday, Janet Yellen said it is “quite plausible” the economy will reach full employment in a couple of years with just the right amount of inflation, which to her mind means 2% a year. [snip]
Here are a few of the radical ideas floating around the halls of the Fed and associated Keynesian economics departments:
1. Take a leaf from Japan by forcing banks to lend in return for Fed support.
2. Require banks to charge negative interest. This means that depositors would lose money if not used. Ms. Yellen voiced support for this idea in 2010. Some supporters of NIPR (negative interest rate policy) would like to eliminate cash entirely, because electronic money…
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