Paul Kasriel Quotes on Money & Wealth (5 Quotes)

In most periods throughout history, households were net suppliers of money to the economy, ... Today, by a record amount, they are net borrowers from the rest of the economy.

The Fed is a price fixer it fixes the price of short-term credit. If there's an increase in demand for credit, interest rates want to rise. But because the Fed is fixing the price of credit to keep rates from rising, it has to create more reserves or allow banks to create more money, and that's what leads to bubbles.

When you print money, it's going to inflate some asset price. Maybe we'll revert to the late 1990s and buy stocks with it.

Historically, movements like this have led to a slowdown in economic activity. While the relationship between money supply and economic growth has deteriorated, the basic qualitative relationship seems to have held up pretty well, so this is of some concern.

You can compare it to a corporation that issues stock and bonds and uses the money not for plant and equipment, but to throw a party for the employees.