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> In a third paper, Nicholas Muller, a professor at Carnegie Mellon University, outlined how the Fed might factor environmental circumstances into monetary poli
by tunesmith 7y ago
> In a third paper, Nicholas Muller, a professor at Carnegie Mellon University, outlined how the Fed might factor environmental circumstances into monetary policy by, for example, keeping rates lower when pollution levels were increasing, to encourage consumption before they got worse, and higher when pollution was declining, to depress spending until the environment improved.
Doesn't this seem backwards...?
- tenkabuto 7y ago> higher [rates] when pollution was declining The above part sounds weird, but I suspect that it's supposed to illustrate the following part "to depress spending until the environment improved". In depressing spending until the environment improved, there would be higher rates while pollution declines and (I suspect) there would continue to be higher rates until an optimal level of pollution is reached.
- nickbauman 7y agoProbably bad reporting