When I advocate something like QE or negative interest on reserves, I often get people complaining that this will not boost bank lending, or that we shouldn’t even be trying to boost bank lending. It almost makes me want to tear out my hair. What in the world does banking have to do with monetary policy? Yes, it may or may not boost bank lending, but it doesn’t matter, as monetary policy is about the hot potato effect. And yes, the Fed should not be trying to boost lending, any more than it should try to boost sales of microwave ovens. NGDP is what matters.