Saturday, April 28, 2012
The French Get It
Francois Hollande, the socialist candidate for the French presidency, is advocating that the European Central Bank make loans to nations (not just banks). The ECB is prohibited from doing so, but it is time to change the rules and abandon austerity that is only making things worse. I have long advocated that central banks loan money interest free to nations that have excess capacity (see earlier blogs).