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The amount spent on the PPP and stimulus to individuals was dwarfed by the 450 billion the fed leveraged into 2.3 trillion to loan to banks and buy mortgage bac
by postpawl 4y ago
The amount spent on the PPP and stimulus to individuals was dwarfed by the 450 billion the fed leveraged into 2.3 trillion to loan to banks and buy mortgage backed securities + bonds: https://apnews.com/article/municipal-bonds-jerome-powell-financial-markets-virus-outbreak-business-8508af5848939f715622a71a44d3af20 https://apnews.com/article/municipal-bonds-jerome-powell-fin...
- lumost 4y agoIt really makes you wonder where all that money went. Monetary Theory tends to treat central bank interest rates and government taxes/borrowing as two sides of the same coin. For various reasons the US has leaned more heavily on the interest rate manipulation over fiscal policy for the last ~30 years - but I do wonder if we're missing an accountability aspect of interest rate based stimulus.