"Rather than fighting the inflation ghosts of the 1970s, I am more worried about repeating the mistakes of the 1930s. As in the 1930s, today we see a lack of demand for loans and a resistance of lenders to take on risk — factors that mean the high level of bank reserves is not finding its way into broader money measures. As in the 1930s, today’s low Treasury interest rates in good part reflect elevated demand for low-risk assets — we see investors run to U.S. Treasury markets every time they hear any bad economic news from anywhere in the world."