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> The actual minting of money has not been a major factor in managing the money supply in a long time. Very much not true. Quantitative easing, the process of
by tyre 7y ago
> The actual minting of money has not been a major factor in managing the money supply in a long time.
Very much not true.
Quantitative easing, the process of minting money to inject liquidity into the economy, was a core tenet of the Obama administration’s* response to the Great Recession. Literally trillions of dollars created to purchase bonds and mortgage backed securities to prop up the economy.
Edit: It was during the Obama administration but implemented by the Fed, which is independent of the White House administration (thank god.)
- deleted 7y ago[deleted]
- mushufasa 7y ago>> Very much not true ?? The parent comment is correct that about the 'actual minting of money' not being a huge factor, in the sense of printing dollars and coins. Quantitative easing increases the money supply, but not via physically printing money.
- H8crilA 7y agoThat's because interest rates were already at zero. Look over to what BOJ did - they straight up bought equity ETFs as a part of their qe, even more hardcore. Still, not much inflation!
- whatshisface 7y agoQE controlled inflation by reducing the fractional reserve rate, thereby counteracting the minting of money with the reduction of credit-money.
- iooi 7y ago> Very much not true. > was a core tenet of the Obama administration’s response Quantitative easing is a monetary policy, not fiscal policy. A central bank dictates monetary policy. An administration dictates fiscal policy. Would recommend you read this: https://en.wikipedia.org/wiki/Quantitative_easing https://en.wikipedia.org/wiki/Quantitative_easing
- tyre 7y agoYes you’re right, I should have said the Fed.
- nonbel 7y ago> "Edit: It was during the Obama administration but implemented by the Fed, which is independent of the White House administration (thank god.)" I was half-listening to Jerome Powell (Fed Chairman) testify before congress today and one congresswoman (CW) asked him (JP) something like: CW: Are there any tools you need that we can give you? JP: No, we have all the tools we need at the moment. CW: Well what about directly purchasing municipal bonds? I learned you aren't allowed to do that. JP: That type of activity is outside the scope of our mandate. CW: Well there are many cities going bankrupt that need someone to buy the bonds so if we give you the power to do that will it help if you can buy them? JP: The best thing you can do to help is have a sane fiscal policy and reduce the deficits.
- malandrew 7y agoHow did she respond to that last statement? Do you have the transcript?
- nonbel 7y agoThat was all paraphrased from memory, sorry. It is somewhere in this: https://www.youtube.com/watch?v=HoWM7KpkAmY https://www.youtube.com/watch?v=HoWM7KpkAmY I think it was probably in the last half of it. Edit: Found it. Starts at 1:33:45