An MMT site bringing you dogma-free economics without the pleadings of self interest
Tuesday, February 10, 2009
Stimulus May Fail to Revive U.S. Growth Without Recovery in Banking System
As usual, the media and pundits have it backward. Lending is pro-cyclical (as is the health of the banking system in general). The stimulus will help the bank rescue plan to succeed, not the other way around.