Tymoigne

Critically evaluate both approaches sketched below and develop clearly well-articulated, consistent arguments to examine both approaches, by grounding them in readings.

Quantitative Easing Policy and the Financial Crisis Background: According to standard monetary theory, Quantitative Easing policy implemented after the financial crisis did not entail a credit explosion because the money multiplier has plummeted, as banks have decided to hold excess reserves. Yet, mainstream theory warns that the collapse of the multiplier is ‘temporary’ because in […]

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