Don't Put Faith in the Fed: Quantitative Easing Isn't Magic. We Need a Dose of Realism about What Central Banks Can Achieve

Saturday, September 1, 2012

“Some people in high places Tim Geithner, the US treasury secretary, for example, profess that restarting bank lending is the key to economic recovery, and increasing bank reserves will spur them to lend. (What else are banks really good for?) But if anyone believes that reserves are key to lending, they deeply misunderstand what banks do.”