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Loose monetary policy is what enabled the US to respond to COVID in the manner it decided to. I don’t think you’re being charitable to the poster you’re replyin

Loose monetary policy is what enabled the US to respond to COVID in the manner it decided to. I don’t think you’re being charitable to the poster you’re replying to when you say “it’s complicated” then place much of the blame on the very factor said poster identified.

jallen_dot_dev 4y ago
But the bulk of the response to COVID (what hackyhacky is arguing) did not happen under the current administration, so wouldn't be due to their policies (what TimTheTinker is arguing).
dools 4y ago
Monetary policy is the setting of interest rates by the central bank. Fiscal policy is taxing and spending. Monetary policy has been more or less zero since the GFC.
smileysteve 4y ago
Don't lose the "Biden administration" context. The majority of Covid debt originated prior to January 20th 2021, and with a GOP majority in the Senate. Of the $1400 stimulus sent to individuals, the previous President, the previous Senate Majority Leader, and the 2 incumbent Senate candidates (that didn't win) each campaigned on the equivalent of the $1400. The previous administration is also on record as rejecting audit measures for the Payment Protection Program. The previous administration nominated the fed chairman that increased the federal reserve balance sheet and tools well beyond 2008-2009, while also not adjusting the pace despite the federal stimulus above (and other stimulus until Fall 2021)
ajross 4y ago
> Loose monetary policy is what enabled the US to respond to COVID in the manner it decided to. This still fails to explain why the US is seeing lower inflation than most of the rest of the world, almost none of which has the borrowing capacity of the US federal government.
- ravel-bar-foo 4y ago
  The US is the world reserve currency, so in uncertain times investors in foreign countries buy dollars. This is the only reason why the US is not currently seeing inflation rates of 20 or 30% per year. The rest of the world is not uniformly seeing inflation. I heard this morning that Canada is at 3.5%. Korea is at 6%, and this is driven by import prices, since the USD is at high demand. Domestically to the US, it's more complicated. Boomers are retiring causing a labor crunch, but businesses are attaining record profits which just about match the magnitude of price increases.

jallen_dot_dev 4y ago

But the bulk of the response to COVID (what hackyhacky is arguing) did not happen under the current administration, so wouldn't be due to their policies (what TimTheTinker is arguing).

dools 4y ago

Monetary policy is the setting of interest rates by the central bank. Fiscal policy is taxing and spending. Monetary policy has been more or less zero since the GFC.

smileysteve 4y ago

Don't lose the "Biden administration" context. The majority of Covid debt originated prior to January 20th 2021, and with a GOP majority in the Senate. Of the $1400 stimulus sent to individuals, the previous President, the previous Senate Majority Leader, and the 2 incumbent Senate candidates (that didn't win) each campaigned on the equivalent of the $1400. The previous administration is also on record as rejecting audit measures for the Payment Protection Program. The previous administration nominated the fed chairman that increased the federal reserve balance sheet and tools well beyond 2008-2009, while also not adjusting the pace despite the federal stimulus above (and other stimulus until Fall 2021)

ajross 4y ago

> Loose monetary policy is what enabled the US to respond to COVID in the manner it decided to. This still fails to explain why the US is seeing lower inflation than most of the rest of the world, almost none of which has the borrowing capacity of the US federal government.

ravel-bar-foo 4y ago
The US is the world reserve currency, so in uncertain times investors in foreign countries buy dollars. This is the only reason why the US is not currently seeing inflation rates of 20 or 30% per year. The rest of the world is not uniformly seeing inflation. I heard this morning that Canada is at 3.5%. Korea is at 6%, and this is driven by import prices, since the USD is at high demand. Domestically to the US, it's more complicated. Boomers are retiring causing a labor crunch, but businesses are attaining record profits which just about match the magnitude of price increases.