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This paper gives money a role in providing cheap collateral in a model of banking; besides the Taylor Rule, monetary policy can affect the risk-premium on bank lending to firms by varying the supply of M0, so at the zero bound monetary policy is effective; fiscal policy crowds out investment via...
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This paper views the policy response to the recent financial crisis from the perspective of Milton Friedman's monetary economics. Five major aspects of the policy response are: 1) discount window lending has been provided broadly to the financial system, at rates low relative to the market rates...
Persistent link: https://www.econbiz.de/10013124914
The economic crisis that began in 2007 and still lingers has invited comparison with the Great Depression of the 1930s. It has also generated renewed interest in Milton Friedman and Anna Schwartz's explanation of the latter as mainly the consequence of the Fed's failure as a lender of last...
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"? -- Keynesianism, monetarism, and two concepts of the output gap -- Was the UK's great moderation due to Keynesianism, monetarism or … what? -- Friedman (1948), Friedman (1996) and the effectiveness of fiscal policy in the USA -- Does fiscal policy matter …? (2nd essay should be the times article) -- British and American monetarism compared -- Do changes in the quantity of …
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