
Monetary Theory: Base Money is just as Special as it Ever Was
Dr. Scott Sumner | Sunday, September 7, 2014
Base money is just as special as it ever was. Technology changes and post-crisis monetary policy are making financial assets and money indistinguishable. Central banks now need to work in partnership with fiscal authorities. Several economists at the Lindau meeting were severely critical of central banks’ conduct of monetary policy in the light of continuing depression in the US, Japan and much of Europe, and called for greater use of fiscal policy to bring about recovery.