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We offer a parsimonious model of the reserve demand to study the tradeoffs associated with various monetary policy implementation frameworks. Prior to the 2007-09 financial crisis, many central banks supplied scarce reserves to execute their interest-rate policies. In response to the crisis,...
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This paper revisits Keynes's writings from Indian Currency and Finance (1913) to The General Theory (1936) with a focus on financial instability. The analysis reveals Keynes's astute concerns about the stability/fragility of the banking system, especially under deflationary conditions. Keynes's...
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Stability -- 10. Inflation and sovereign currencies -- 11. Conclusions: Modern money theory for sovereign currencies. … the COVID-19 pandemic, the rise of inflation, and how to finance a Green New Deal, are also discussed. Since the second … causes of the post-pandemic inflation that has hit much of the world. It also offers an alternative approach to dealing with …
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