Fascinating story of the history of money and economists' attempts to explain / theorize money. Long, but an easy read at http://www.monetary.org/bromsgrovetalk04.htm
In the previous montrous, global financial meltdown (the Great Depression), the leading economists at University of Chicago sang a very different tune from what they promote today. They actually called for nationalizing the Federal Reserve Banks and giving total control of money creation to government. They argued it was necessary to provide the proper environment … Continue reading History: Chicago School Didn’t Always Support the Banks
Some more detailed background on a common question asked by students in macro classes: Who Owns the Fed? This question and confused answers to it also form the basis of many conspiracy theories and misunderstandings of our monetary system. To set the record straight, I quote from http://www.monetary.org/federalreserveprivate.htm Therefore most Americans would be surprised to … Continue reading Who Owns The Federal Reserve?
I know I sound like a gloomy-gus when considering the prospects for the economy, but I'm not totally alone. Calculated Risk quotes from Cleveland Fed President Sandra Pianalto: When the Small Stuff Is Anything But Small. A few excerpts: (bold emphasis is CR's, red is mine): ... The recovery from the recession may also end … Continue reading The Details Make The Future Look Dark