Re:Fed Prints Another $205B This Week, M2 Growing at Fastest...
by RobertoG on Friday April 24, 2020 @06:33PM
(#22973608)
That's not how it works(1).
As the QE programs have showed, you don't get any demand by creating more reserves in a depression. For those reserves to get traction over the economy you need somebody that borrow from the banks.
As the QE programs have showed, you don't get any demand by creating more reserves in a depression. For those reserves to get traction over the economy you need somebody that borrow from the banks.
(1) - http://bilbo.economicoutlook.net/blog/?p=661
http://bilbo.economicoutlook.net/blog/?p=29140