Does Easy Monetary Policy Enrich The Financial Sector?

via Zerohedge

The easing of credit conditions (in other words, the enhancement of banks’ ability to create credit and thus enhance their own purchasing power) following the breakdown of Bretton Woods — as opposed to monetary base expansion — seems to have driven the growth in credit and financialisation. It has not (at least previous to 2008) been a case of central banks printing money and handing it to the financial sector; it has been a case of the financial sector being set free from credit constraints.

Who’d ‘ave thunk!!


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2 Responses to “Does Easy Monetary Policy Enrich The Financial Sector?”

  1. Patrick Donnelly Says:

    It is of course, the other way around. Those who have $$ ask politely to have laws changed to allow more activity… more $$ for them. It happens and out of gratitude the finance folks are generous to those who change the laws. Until the system breaks!

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