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- Monetary policy has two dimensions. One is the expansion of central bank balance sheets to increase the money supply with the goal of boosting nominal demand. The second is a change in the composition of the balance sheet with the goal of influencing the relative price of assets, with the goal of boosting real aggregate demand.Willem Buiter has called the first policy; quantitative easing and the second; qualitative easing.We need more qualitative easing.We may need a bigger government sector; but that is a logically separate question from the issue of how to cure the unemployment problem.