Rating is available when the video has been rented.
This feature is not available right now. Please try again later.
Uploaded on Oct 19, 2011
I use the model developed in the first half to show that money is not neutral in a credit-based economy--a higher rate of money creation results in a fall in unemployment--and also model a credit crunch. I also model two government policies to counter a crunch: giving money to the banks (which Obama did) and giving it to the debtors (which the Australian government did). Conventional money multiplier theory argues that the former is more effective; I show that the latter is about three times better than the former.