The History of Financial Disintermediation

In the mid-70s, there was a proposal to put all the regulations that were on banks trying to apply those other competitors. The government then took the pressure off banks by issuing some bonds. But once again, they were keen to suppress the interest rate. And so as they did that, that would just shift the burden back on to their customers. So I think if you work your way through all those steps, you can see why monetary theory is not new, it's old. It's really taking us back to a period which we've been through and we found serious problems with it. Then we discarded them and then moved to the situation we're now in.