The Review of Economics and Statistics Vol. 54 No. 1 1972
Scale Economies in Public Schools
Abstract
control the money supply. However, we feel any such problems are outweighed by the possibility of the FRB providing, some compensation for what almost all economists agree, is the uneven impact of tight money on the housing market. In fact, increasing the money supply by buying FHLB bonds may make monetary policy even more effective by increasing the FRB's ability to more stringently ration funds to other sectors while not forcing a collapse of the housing market. Table 4 shows a quarterly comparison of actual interest costs for FHLB financing since 1965 versus costs under the hypothetical condition that FHLB bonds had been sold to the FRB as suggested above. The cost differential between the two alternative arrangements adds up to 150 million dollars during the period 1969 and the first half of 1970. This is a savings foregone by abiding with the present financing arrangement.
- DOI
- 10.2307/1927501
- Volume
- 54
- Issue
- 1
- Pages
- 100
- Sources
- openalex crossref