On Thu, Jun 20, 2013 at 1:55 PM, Doug Henwood <[email protected]> wrote:

> It could do these things, sure. But the point of buying MBS's etc. was to
> support their value and keep interest rates down. I want to shift resources
> from elite private consumption to nonelite consumption and public
> investment.



Both of these can be achieved by properly targeted helicopter drops - for
public investment, drop the cash on the Treasury department; to increase
nonelite consumption, drop the cash over Times Square - or send equal
checks to everyone filing an income tax return.





> For that, I'd say fiscal policy is the way to go - partly debt-, and
> partly tax-financed. The gov should take away with one hand and give to the
> other. Having a central bank do these things is a way to avoid the struggle
> over the allocation of resources.
>


If you can get what you want without a struggle, why not?
-raghu.
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