[ExI] banks and crash

Stathis Papaioannou stathisp at gmail.com
Mon Oct 13 23:37:00 UTC 2008

2008/10/14 gts <gts_2000 at yahoo.com>:

> I realize that appearances can deceive, but it appears on the surface that massive deficit spending during WWII caused massive growth in GDP and massive growth in employment, exactly as Keynes predicted. I have not seen similar statistics about any massive increase in the money supply during WWII, assuming they exist.

Deficit spending while the central bank keeps interest rates unchanged
has the effect of increasing the money supply.

Stathis Papaioannou

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