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Do you think the Fed should have not done this and allowed inflation to run below their 2% target (perhaps negative)? Or do you have an alternative suggestion f
by OscarCunningham 6y ago
Do you think the Fed should have not done this and allowed inflation to run below their 2% target (perhaps negative)? Or do you have an alternative suggestion for how to keep inflation steady without printing money?
- adam_arthur 6y agoThe fed should use a more comprehensive bundle of goods to measure inflation. Home prices, is a good example. Once they do that, inflation numbers will read much higher. By some accounts, home prices have increased by over 10% since this time last year. A healthy society needs room for social/fiscal mobility, which becomes increasingly difficult when asset prices are inflated relative to median income.
- PragmaticPulp 6y agoThe challenge is that the fed isn't the only factor that determines inflation. It also varies based on supply and demand factors, among other things. Housing prices, college tuition, and medical care dominate inflation measures. All three of those categories have significant government influence well beyond the fed. If we stopped using federal funds to subsidize college and home loans, tuition prices and housing costs would magically stabilize in no time. Trying to tame tuition or housing inflation from the fed won't work if the other parts of the government are going to great lengths to subsidize those areas.