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Similarly lowering interest rates into the ground when consumers still had plenty of money but supply was constrained probably wasn't a wise move either. More
by jpgvm 4y ago
Similarly lowering interest rates into the ground when consumers still had plenty of money but supply was constrained probably wasn't a wise move either.
More targeted assistance of just affected industries during the pandemic could have prevented almost all of this.
- stephen_g 4y agoTrue, that was a big part of the problem. This is one of these “Doesn’t anybody see this? I feel like I’m taking crazy pills here” moments - dropping the interest rates didn’t do why we wanted (just pumps up property and equity prices with cheap money but doesn’t actually stimulate the economy), even some countries set them negative which didn’t work either, and raising interest rates has never been really shown to reduce inflation (just that you can raise them high enough to cause a crisis, which causes far more problems, and then hopefully by the time the recovery starts inflation contributors have abated…) Their whole monetary policy seems to be bunk.
- MrVandemar 4y ago> Their whole monetary policy seems to be bunk. It's mostly been under the management of a party who straight-out optimise for company profits and screw the little guy (who spent 10 years continually voting for them because Chairman Rupert said so).
- imtringued 4y agoThe problem with monetary policy is that there is no way to actually decrease the money supply, other than repaying debt. If there was literally any other mechanism to get rid of excess money, then you could, for example, do helicopter money when there is a recession and do the inverse of helicopter money when there is a boom and never even touch the interest rate.
- okr 4y agoDoes that mean, someone would add or take money from anyones bank account? And you can't do anything about it?
- kasey_junk 4y agoTaxes are one of these mechanisms. It’s just political suicide to vary the tax rate like this.