Posted inEditorial

Monetary Solutions: Negative Interest Rates or 100 Percent Reserves?

Central Banks increasingly favor hyper Keynesianism: the quest to stimulate real growth by increasing monetary growth, first by low, then by zero, and now by negative interest rates. Why hasn’t it worked? Because real growth is constrained by real resource shortages, while hyper Keynesianism assumes unemployed resources. There is unemployed labor to be sure, but […]