To: ahhaha who wrote (78207 ) 1/26/2007 7:09:59 PM From: glenn_a Read Replies (2) | Respond to Ah ahahaha, Grace's every-present alter ego. Well this is an honor to be sure.Credit markets are notoriously free. They can't be controlled by the FED. Proof: you don't have to play. ))The cost of money is never depressed and can never be manipulated even by FED except over short periods of time. ))Griffin attributes to a credit creation method things that have nothing to do with it. And, by the way, FED wasn't modelled after BOE. There are few similarities between the two. ))FED wished they could manipulate money supply to the extent you imply. They've tried all degrees of excess and dearth and all of them failed to achieve their implied policy objectives. One noteworthy attempt was in the late '80 early '90s when FED tried to implement Friedman's program of money supply targeting. It worked exactly as it should, but FED and Friedman expected something else, something that couldn't ever happen, along the lines of stable prosperity. ... ))
