Duncan’s Economic Blog

1930 Calling Again

Posted in Uncategorized by duncanseconomicblog on July 1, 2009

News from 1st July 1930.

Editorial: D.M. Marvin, economist for Royal Bank of Canada, says present depression caused by tight credit; points out that in spite of low rediscount rate many banks are not lending due to poor balance sheets; total credit extended by the Fed. Reserve banks fell from $1.621B last Oct. to $937M in June. Proposes Fed. Reserve banks inject $500M of reserve credit by purchasing government securities. Idea is worth considering, but must be done with care to avoid inflation.


2 Responses

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  1. newmania said, on July 1, 2009 at 11:17 am

    When you see the 1930s resist the temptation to swerve left because you will run straight into the 70s

    • duncanseconomicblog said, on July 1, 2009 at 11:36 am

      Very good.

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