Explain commercial..?
i believe that inflation is a social phenomenon. So i'm dismissive of expanding CB reserves as a policy tool. It just doesn't ignite the imagination of the many. After $ trns I don't see STOP QE protests on Main Street . It only annoys hard money elites; and they don't matter
Effective policy changes behaviour. Change behaviour and you have a shot at changing history. COMMERCIAL private sector banks have a choice to invest in loans and/or Ts. Today they comfortably hold a huge amount of Ts. We need to make them feel less comfortable
I want them to lend more to you and me. Do this and fractional reserve banking will expand the real money supply rapidly - the M2 series that changes price behaviour.
Commercial banks fear disinflation. Make them fear for inflation and they will hock those Ts back to the Fed. It's the reverse volcker trade...twist, turn but you're not allowed to HOLD
