Policies since the financial crash have been timid compared with historic examples, writes Martin Sandbu in his article published in the Financial Times on 29th Aug 2017, in which he offers “three radical ideas to transform the post-crisis economy”.
Here’s a short extract:
If private management of the money supply is a recipe for instability, the radical alternative is to nationalise the money supply. This is do-able today: central banks can offer accounts to all members of the public (or make central bank reserves available to everyone). Banks could be restricted to allocating existing savings to investments, rather than creating new credit.
Read the whole article here.