Description: “I’m going to start with a model of a perfectly safe 100 percent reserve economy,” said Robert Lucas, “…which looks better and better to me.” Lucas, a Nobel Prize-winning economist at the University of Chicago, was speaking two weeks ago at a panel in San Diego to mark the 100th anniversary of the Federal Reserve. It’s a fairly radical place to start.
Date: Jan 25, 2013
Questions for Discussions:
- What is inside and outside money?
- What is the relationship bewteen banks and the Federal Reserve in terms of the creation of money?
- How would stricter rules for banks change their business models?
- Do you think this would be good or bad for the economy as a whole?