2018-6-13 07:25 |
So they pull their uninsured money out of the banking system, disrupting the free flow of payments.
[…] However, suppose consumers could convert their bank deposits into a digital currency that would be issued and backed by the Fed?
When it wants to raise rates — as it is doing now — it reduces its holdings of securities and increases the rates it pays on reserves.
This is a nice deal for the banks, but hasn’t done a whole lot to help the rest of us.
The past 10 years are proof positive that current monetary tools are woefully inadequate to stimulate broad-based economic growth.
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