No. As soon as there was a hint of a recession all the banks would get hit with runs on the bank all at once. Without the ability of the federal reserve to put newly created bitcoins into circulation the way it puts newly created dollar bills into circulation, the banks all come crashing down.
Yes - that makes sense to me.
Although it must be said that it probably wouldn't be
all the banks that would come crashing down - just those who had been the more avaricious - the ones that remained would come out of it (probably) stronger than before (medium to long term)
That being said I think you make a good point - and one that shows the difference a BTC economy might be able to make.
So what you're saying is that perhaps technically a credit boom would be possible with a BTC economy (BTC derivatives etc) - but when the shit hits the fan there would be no way to sustain the banks that created the problem - because you wouldn't have the option of QE ? After all, they almost didn't manage to keep the banks afloat
with QE
And so FRB would not be something that would likely be undertaken to anything like the wild excesses that have occurred up to today, in a new BTC based economy, if at all ?