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This is not going to help - It takes two years for monetary supply changes to fully propagate through the economy - Cutting rates to 0% has not been effective
by dcftoapv 7y ago
This is not going to help
- It takes two years for monetary supply changes to fully propagate through the economy
- Cutting rates to 0% has not been effective in Japan or Europe
The fed does have a role to play here
- They can provide liquidity to the market
- They can serve as a backstop in a time of crisis
DC needs to get their shit together
- Eliminating Trump's tariffs would do more to increase long-term investment than cutting rates to 0%
- They should have created targeted lending program to help businesses that need short-term cash flow assistance yesterday; the next best time to do it is right f*ing now
- paganel 7y agoAs someone said before, I think this is more about sending a message, as in "we're going to do whatever it takes". To be honest I don't know what the future will hold from a financial/economics point of view, but imho this is an once-in-a-century crisis.
- dcftoapv 7y agoYou're right, and they made a lot of changes that are necessary to keep the global economy functioning over the next few months. I did not mean to imply that they shouldn't be taking action. I am very skeptical about cutting rates again. There are much more effective actions that could be taken at the policy level. The fed is doing what it can, but it doesn't have the right tools to lead the charge on this.
- paganel 7y agoYeah, this should definitely be teamed up with corresponding fiscal and trade policies, the Fed cannot sort all of this mess by itself.