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"The argument against the textbook money multiplier is not new. For example, Bernanke and Blinder (1988) and Kashyap and Stein (1995) note that the bank lending channel is not operative if banks have access to external sources of funding."
"The appendix illustrates these relationships with a simple model. This paper provides institutional and empirical evidence that the money multiplier and the associated narrow bank lending channel are not relevant for analyzing the United States."
QE doesn't work. It could if properly used. It hasn't been. It's improperly used now. Boosting aggregate demand is needed. Doing so requires putting money in consumers' pockets.
Fed-style money printing madness doesn't stimulate growth and create jobs. It flows to bank balance sheets. It's used for speculation, high salaries, big bonus, buying competitors, and consolidating to greater size.
Helicopter Ben dropped lots of money on Wall Street. Doing so sent financial asset prices soaring. None went to Main Street where it belongs. Dire economic conditions there matter. Things head from bad to worse. Nothing ahead looks promising.
Wall Street Journal editors say Japan's economy recovery depends "more on structural reform than monetary policy." Prime Minister Shintaro Abe's Liberal Democratic Party (PDP) resists doing it. He prefers letting Kuroda do most heavy lifting.
Pedal-to-the-metal easing will adversely affect Japan's neighbors. South Korea expressed alarm. A depreciating yen harms its exports. Indonesia, Taiwan, Thailand and Malaysia are concerned. They'll also lose out.
Dropping money on bank balance sheets doesn't work. Bernanke's done it since 2008. According to Paul Craig Roberts :
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