How to create a recovery through ‘Quantitative Monetary Easing’
This article explains the causes of banking crises and proposes suitable policies to resolve them and stimulate a swift recovery. It is applied to the Japanese situation and was published in 1995, presenting a new concept of monetary policy, dubbed by the author 'quantitative monetary easing', or short, as also mentioned in the text, 'quantitative easing'. The definition of this concept is to expand the quantity of total credit creation, especially used for GDP transactions. Unsustainable asset bubbles are seen as being caused by substantial credit creation in excess of nominal GDP growth. Central banks can intervene and by adopting quantitative easing end the banking crisis and stimulate a swift recovery.