U.S. Monetary Policy & Economic Recovery

In my guest appearance on CNBC's "The Call" program Tuesday morning, the topics were "Should the Fed Stick to Monetary Policy?" and "Is the Economy Back on Track?" On the economy, I made the same point about excess reserves and the Fed's mistake regarding excess reserves in the 1930s that I made in my June 10 posting.

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  1. Manueu says:

    Also, how does MMR disagree with MMT in this inatnsce?I would imagine that the demand for NFA’s right now is well-beyond the supply? I know other areas where MMR & MMT differ, but is this one of them?I tend to simply put it that any economy has a tendency to desire/need a certain ratio of NFA money to total equity on their balance sheets to make sure they have financial flexibility (can lose a job without immediately having to cut way back, house value can come down a bit without balance-sheet shock).Does MMR reject this assertion? Why?