Krugman and Tobin on Banking

Paul Krugman cites a 1963 paper by James Tobin in the process of clarifying his own view of how banks should be considered as part of the broader financial system: “All the points I’ve been trying to make about the non-specialness of banks are there. In particular, the discussion on pp. 412-413 of why theRead More

Bank Reserves

Paul Krugman responds to a Cullen Roche post at Pragmatic Capitalism: The Krugman post is reproduced below. Professor Krugman is a great writer and communicator of economics. Cullen Roche has raised an issue about the relationship between bank reserves and bank lending. And the professor has responded to that. He concludes with a take onRead More