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They already did that for several years with QE. They de facto reduced the outstanding US debt by several trillion. You could argue for more monetary stimulus b
by PrimalDual 10y ago
They already did that for several years with QE. They de facto reduced the outstanding US debt by several trillion. You could argue for more monetary stimulus but it's hard to get away with it now that they are very close to reaching their inflation target. Obviously the US and other advanced economies have suffered through a very long period of low inflation so they are in a unique position in history where they could print quite a bit of money and not end up like Zimbabwe or Venezuela.
- jack9 10y agoIt started lightly, but became appalling during the first Bush administration (into Clinton, second Bush and Obama and soon Trump). It just got called QE when it became a tool to buffer against the inevitable failing industries. The report that was published detailing, the reserve's manipulation, stopped being issued in the 90's. I can't seem to find out if that information is now published somewhere else. I assume so.
- redblacktree 10y ago> suffered through a very long period of low inflation Why do you say "suffered?" For my personal finances, low/no inflation seems like a very good thing. My saved money doesn't decrease in value.
- PrimalDual 10y agoThe negative effects of low inflation are well documented. You can see Japan as an example. Low inflation has perverse incentives that hamper employment and econmic growth. Essentially low inflation is good for the consumer until they lose their job.
- mistermann 10y ago> They de facto reduced the outstanding US debt by several trillion. How does printing money to buy government bonds reduce the debt?
- PrimalDual 10y agoIt does if you give all of the interests paid on that debt back to the government like the Federal Reserve does.
- mistermann 10y agoThat's the interest payments, what about the debt itself?