Mishkins channels
References Stiglitz paper on rationing credit
Then forgets it
Private banking means
We have
The macro perverse credit cycle
Despite rates and money injection
standards tighten in a crunch contraction
Killing monetary and credit channels
Other assets ?
See farmer for purchasing equity shooting up the stock market
Will this lead to
A demand injection
thru animal spirits upper effect spending burst ?
Probably not !
The corporate captains will take the equity boost as gracious extra personal bonus trigger
But still
sit on their hands
No more outfit spending
Till output demand lifts
