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The Fed's dual mandate is to "maintain price stability" and to "ensure maximum stable employment", both of which are only accomplished through explicit manipula
by cheald 4y ago
The Fed's dual mandate is to "maintain price stability" and to "ensure maximum stable employment", both of which are only accomplished through explicit manipulation of the economy. They're an enormously powerful entity, and if they're actually accomplishing their goals, do help keep the economy running smoothly (most specifically, IMO, by improving the confidence of people to make long-forecast economic decisions), but when they get it wrong, they have the potential to cause damage at a scale nearly unrivaled by anyone else.
- ClumsyPilot 4y ago> both of which are only accomplished through explicit manipulation of the economy. You can't have an unmanipulated economy the same way you cant have food without chemicals - sugars, vitamins, micronutrients, water - they are all chemicals. The same in the economy - money supply, interest rate, etc. do not 'just appear', they are 'manipuled', whether by banks, FED or someone else. Someone has to issue currency and run the system You shouldn't be asking wether the system is managed, you should be asking in who's interest it is managed.