Monetarism rides again? US monetary policy in a world of Quantitative Easing

• In a model of banking we give money a role in providing cheap collateral. • Monetary policy is still effective at the zero bound. • A simple rule for making M0 respond to credit conditions stabilises the economy. • Combination this with Price-level or GDP targeting, stabilises the economy further....
Ausführliche Beschreibung

• In a model of banking we give money a role in providing cheap collateral. • Monetary policy is still effective at the zero bound. • A simple rule for making M0 respond to credit conditions stabilises the economy. • Combination this with Price-level or GDP targeting, stabilises the economy further. • Aggressive and distortionary regulation of banks’ balance sheets is redundant. Ausführliche Beschreibung