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They can justify such "quantitative easing" (QE) on monetary grounds since they have already lowered short-term interest rates to, or close to, zero.
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One of these days, probably, the monetary ground will become supersaturated with them.
The fact is that the ground is so ripe for a candidate to seize the lead on monetary reform that one has to wonder why no one is stepping up.
On Greece, too, it has been a stickler, denying Syriza's requests to issue more short-term debt on the ground that this would violate a ban on monetary financing of states.
In his testimony on monetary policy Wednesday, Mr. Greenspan made his trademark argument: technology has changed the ground rules.
"A Tract on Monetary Reform".
"We cannot just rely on monetary policy.
Keynes's cool, rational voice on monetary theory and monetary policy must once again be heeded.
There has been an overreliance on monetary policy.
First, don't give up on monetary policy.
Until recently, most economists relied on monetary policy.
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