2 ms·
The 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 mecha
by imtringued 4y ago
The 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.