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Thanks, Aimilios. Minsky argued that financial volatility and instability cannot be eliminated because the attempts to eliminate them simply transform behavior in ways that convert one form of volatility into another. He also thought it was better to have a fragmented...
...financial system with lots of moving parts rather than a unified, “efficient” financial system because while the former was likely to have many more crises, unlike in the latter they were easier to contain and less likely to be correlated. I don’t know if you would...
...agree, but it seems to me that he's probably right. I also think that the question of “why not” people’s QE should really be a question about the conditions under which people’s QE boosts both demand and production versus the conditions under which it only boosts demand. To...
...keep this discussion twitter-length, I would only suggest that in any economy in which debt is rising quickly and the median household income share of GDP is very low, whether because of income inequality or low household income shares of GDP (most major...
...economies), “people’s QE” makes a lot of sense to me, as would indeed almost any other form of income redistribution, along with public sector financing of productive infrastructure. We need more demand.
