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Literally all of the bailout tools from 2008, plus many more are available today. In fact the Fed is much more willing to quickly deploy QE because it has exper
by dcolkitt 4y ago
Literally all of the bailout tools from 2008, plus many more are available today. In fact the Fed is much more willing to quickly deploy QE because it has experience and has seen it work. This isn’t hypothetical, because it’s exactly what happened in March 2020, and why the Covid recession was a V-shaped recovery.
- throwawaylinux 4y agoYou think the Fed is more inclined to print money when inflation is running above 8% than when it was 2.something? What's the reasoning there?
- dcolkitt 4y agoInflation is a function of an overheated economy running with a tight labor and commodity market. If you're positing a 2008-like crisis followed by a deep recession, it's virtually certain that the economy will become deflationary, as people hoard cash. You don't have to take my word for it. From 2007 to 2008 inflation crashed from nearly 5% to 0.1%.
- throwawaylinux 4y agoYou said the tool is available _today_ though. It's not. Of course on some other day when inflation is not out of control it would be available, but not today.