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They can't do a whole lot because they already fucked up monetary policy in the last 10 years. They spent the last decade dismantling the breaks from the car to
by tsss 5y ago
They can't do a whole lot because they already fucked up monetary policy in the last 10 years. They spent the last decade dismantling the breaks from the car to get it going and now that it's going, they can't slow down anymore.
- arcticbull 5y agoThat makes no sense, of course they can, they can raise interest rates which decreases the supply of money. The thing is that would hurt the economy and their goal is to maximize employment.
- UncleOxidant 5y agoMaximizing employment is one goal. The other is to keep inflation in check.
- arcticbull 5y agoI’m aware but really their goal is to do both at the same time not to sacrifice one at the expense of the other.
- UncleOxidant 5y agoSure, but right now unemployment is under 4% (pretty much at record low levels) while inflation is running hot at 8.5%. Seems like they've got some room on the employment side.
- tsss 5y agoThey can not, because the enormous amount of money that they printed the last 10 years is not in circulation yet. They can't simply take that back (only very indirectly through ways that are both illegal and would political suicide). The private banks who hold that money now decide when to put it into circulation; the central bank has no power here.