Does Easy Monetary Policy Enrich The Financial Sector?

via Zerohedge

http://www.zerohedge.com/news/guest-post-does-easy-monetary-policy-enrich-financial-sector

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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