3 ms·
How can the Fed support full employment if governments are forcing people to stay inside and business to close?
by hnaccy 7y ago
How can the Fed support full employment if governments are forcing people to stay inside and business to close?
- OscarCunningham 7y agoBy making lending to the closed businesses so attractive that they can stay open over the course of the quarantine. (Likewise people can stay fed.)
- onlyrealcuzzo 7y agoBut that's not what this is doing at all. This is keeping existing corporate debt artificially priced. Unless they lower rates to negative, new debt isn't getting any cheaper.