A new Monetary Policy tool to end Inflation and avoid Recession w/ Prof. Larry Marsh, Notre Dame - EP184

In this episode of the Economics Explored podcast, host Gene Tunny interviews Professor Larry Marsh about his proposal for a new monetary policy tool that uses a central bank digital currency (CBDC) to end inflation without causing a recession. They also discuss the disconnect between the financial sector and the real economy. Larry Marsh is Professor Emeritus in the Department of Economics at the University of Notre Dame and author of the book "Optimal Money Flow." Please get in touch with any questions, comments and suggestions by emailing us at [email protected] or sending a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP184What is optimal money flow according to Prof. Marsh? [1:28]What is the role of government in controlling the economy? [6:24]A helicopter drop of money [13:58]What is the idea of a Federal Reserve/central bank digital currency (CBDC)? [18:56]Fractional Reserve Banking [23:08] Narrow banking as a solution to the banking sector problems [24:55]A good example of an all-employee owned company: Burns & McDonnell, Kansas City, MO [31:31]What Larry describes as a winner-takes-all economy [34:37] The invisible hand of the market [37:43]Gene’s wrap up: How the current monetary policy tightening is causing hardship in many economies, it may well be worth experimenting with a new monetary policy tool [43:47]Links relevant to the conversationLarry Marsh’s Optimal Money Flow website:https://optimal-money-flow.website/Where you can purchase Larry’s Optimal Money Flow book:https://www.avila.edu/optimal-money-flow/AEA conference session in which Larry presented his idea for the new monetary policy tool using a CBDC (presentation available for download):https://www.aeaweb.org/conference/2023/program/1335Australian ABC News article referring to Nicholas Gruen’s savings policy proposal mentioned by Gene in the episode:https://www.abc.net.au/news/2023-02-12/raising-interest-rates-reserve-and-bank-and-inflation-management/101952926Nicholas’s 1999 paper outlining the policy proposal:https://lateraleconomics.com.au/wp-content/uploads/2014/02/AvoidingBoomandBust.pdfLinks to videos on China a listener sent me in response to EP182 with Dr Jonathan D T Ward: Prepare for Armageddon: China's warning to the world | 60 Minutes AustraliaTwo Davids & Goliath | David Matas & David Kilgour | TEDxMünchenAmerica Just KILLED China's Tech Industry