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But, if after the fact, we find that government can nto control the monetary mass unless it controls directly the banks, we must conclude that banks generate debt first, find reserves later (via the lack of need for firms to hold any reserve on debt), we should conclude that all first year macro books, including Krugman, are wrong.

I can not even imagine a first book in Physics being wrong in the appropriate approximation...

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon Oct 4th, 2010 at 05:38:30 PM EST
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