Paul Krugman at the NYS Writers Institute in 2009
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the problem with this analogy is that he never explains where the extra coupons come from.... with real money policy, the fed has to borrow or tax in order to increase the money supply. the free market is the only mechanism that can expand and contract the money supply without creating a bubble. unless the people want to suffer through more credit bubbles, we have to abolish the fed. and have competing currencies without a central bank
emcalone 1 year ago