Despite what you think, monetary policy has not been expansionary, and that's the problem. While the Fed's assets grew from $0.8 trillion to $2.8 trillion between 10/08 and 7/11, it was matched, almost dollar for dollar, by a $1.6 trillion increase in commercial bank deposits at the Fed. The money supply cannot expand when banks keep their excess reserves at the Fed. It only grows when banks lend those monies to businesses and households.Visit Elliott's blog, GraphsandLaughs.net, by clicking here.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Thursday, April 5, 2012
Elliott Eisenberg on Monetary Supply
Elliott Eisenberg, PhD., a housing economist who also works for NAHB, is publishing a daily blog on economics: GraphsandLaughs.net. Check out Elliott's latest post:
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