On Oct 30, 2011, at 3:57 PM, Jim Devine wrote:
>  are you in favor of Friedman's old
> proposal (which he dropped) that there should be 100% reserve
> requirements?

Friedman's proposal? My "Monetary Economics" at Columbia, James Angell  
(a good Keynesian) was advocating "100% money" when Friedman was still  
in kindergarten!   When the economy is in underemployment  
(dis)equilibrium the proposal is obviously irrelevant.  But in an  
economy aiming at full employment it would give democratically  
accountable authorities direct control over the credit system and thus  
would be an integral part of economic planning.  That, I suspect, is  
why Friedman dropped the idea.




Shane Mage

"All things are an equal exchange for fire and fire for all things,
as goods are for gold and gold for goods."

Herakleitos of Ephesos, fr, 90

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