Re: Re: Re: Re: Tom Dickens on Monetary Policy

[Ellen Frank]

Tom writes:
>
>The problem is that the debate will be limited to bailing out the big
>bourgeoisie with cuts in the Federal funds rate and cheap funds at the
>discount window.  If the Fed chose instead to give every citizen a $1,000
>grant, I don't think anybody would argue that the powers of financial
>policy are limited.
>
>Edwin (Tom) Dickens
>
This is such a good point!  I have always found the debates
about "is monetary policy effective" on the left to be very 
sterile.  Whether or not fed funds increases lead to investment
declines, one thing is certain about the impact of monetary policy
-- it keeps money in the hands of the rich.  Forget about 
giving everyone $1000.  How about giving low-cost loans to 
build affordable housing, or day-cares, or schools, or 
solar power research?  Instead the Fed restricts its lending
to financial institutions.

                                Ellen