“The whole subject of the liquidity trap has a sort of Alice-through-the-looking glass quality. Virtues like saving, or a central bank known to be strongly committed to price stability, become vices; to get out of the trap a country must loosen its belt, persuade its citizens to forget about the future, and convince the private sector that the government and central bank aren’t as serious and austere as they seem.”

"Thinking About the Liquidity Trap", Journal of the Japanese and International Economies (2000)

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Paul Krugman106

American economist 1953

John Brooks (writer) (1920–1993) American writer

Business Adventures: Twelve Classic Tales from the World of Wall Street

“So: if the chronic inflation undergone by Americans, and in almost every other country, is caused by the continuing creation of new money, and if in each country its governmental "Central Bank" (in the United States, the Federal Reserve) is the sole monopoly source and creator of all money, who then is responsible for the blight of inflation? Who except the very institution that is solely empowered to create money, that is, the Fed (and the Bank of England, and the Bank of Italy, and other central banks) itself?”

Murray N. Rothbard (1926–1995) American economist of the Austrian School, libertarian political theorist, and historian

The Case against the Fed.

“Any citizen, with the help of the organ banks, can live as long as it takes his central nervous system to wear out.”

Larry Niven (1938) American writer

Millard Parlette's notes, in Ch. 7 : The Bleeding Heart
A Gift From Earth (1968)
Context: Any citizen, with the help of the organ banks, can live as long as it takes his central nervous system to wear out. This can be a very long time if his circulatory system is kept functioning. … But the citizen, cannot take more out of the organ banks than goes into them. He must do his utmost to see that they are supplied. … The only feasible method of supplying the organ banks is through execution of criminals. … A criminal's pirated body can save a dozen lives. There is now no valid argument against capital punishment for any given crime; for all such argument seeks to prove that killing a man does society no good.
Hence the citizen, who wants to live as long and as healthily as possible, will vote any crime into a capital crime if the organ banks are short of material. … Cite Earth's capital punishment for false advertising, income tax evasion, air pollution, having children without a license.
The wonder was that it had taken so long to pass these laws.

“Italians dream that the ECB (European Central Bank) will make their life easier than the Bundesbank does now… The new central bank is certain to establish itself at the outset as a direct continuation of the German central bank.”

Rudiger Dornbusch (1942–2002) German economist

Euro fantasies, 1996

“Economics should be under no illusion that central banking will ever become a science.”

Jürg Niehans (1919–2007) Swiss economist

Source: The theory of money, 1978, p. 296

“I want to make sure you keep your eyes on the ball, that is, the two basic missions of a central bank. The first is maintaining macroeconomic stability: maintaining stable growth and keeping inflation low and stable. The principal policy tool for maintaining macroeconomic stability is monetary policy. In normal times, the Fed and other central banks use open market operations—purchases and sales of securities in markets—to move interest rates up or down, and in doing so try to create a more stable macroeconomic environment.
The second part of a central bank's mission is maintaining financial stability. Central banks are focused on trying to ensure that the financial system functions properly, and in particular, they want to prevent, if possible, and if not, to mitigate the effects of a financial crisis or a financial panic.”

Ben Bernanke (1953) American economist

Lecture 2: The Federal Reserve after World War II
The Federal Reserve and the Financial Crisis (2012)

“The most serious criticism of EMU is that by abandoning exchange rate adjustments it transfers to the labor market the task of adjusting for competitiveness and relative prices… losses in output and employment (and pressure on the European central bank to inflate) will predominate.”

Rudiger Dornbusch (1942–2002) German economist

Euro fantasies, 1996

“Does he concede that the whole basis of the Maastricht treaty is the establishment of a European central bank which is staffed by bankers, independent of national Governments and national economic policies, and whose sole policy is the maintenance of price stability? That will undermine any social objective that any Labour Government in the United Kingdom—or any other Government—would wish to carry out. Does my hon. Friend recognise that the imposition of a bankers' Europe on the people of this continent will endanger the cause of socialism in the United Kingdom and in any other country?”

Jeremy Corbyn (1949) British Labour Party politician

Question http://hansard.millbanksystems.com/commons/1993/jan/13/treaty-on-european-union-1 in the House of Commons (13 January 1993). <br class="br">1990s

“He was optimistic about the future of India "Though never too optimistic about its governments - whether central or state, whether past, present or future.”

Fali Sam Nariman (1929) Indian politician

Affirmative action, not quotas for education': Nariman

“Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.”

Alan Greenspan (1926) 13th Chairman of the Federal Reserve in the United States

Testimony Before the Committee on Banking and Financial Services, U.S. House of Representatives July 24, 1998 http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm. <br class="br">1990s

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