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I think article is suggesting that we might entertain the idea that raising interest rates, although effective in reducing inflation, has some rather nasty side
by strangattractor 4y ago
I think article is suggesting that we might entertain the idea that raising interest rates, although effective in reducing inflation, has some rather nasty side effects and there might be other ways we might control inflation/deflation in addition to monetary policy.
- FormerBandmate 4y agoGreat. What are they, and how come raising interest rates is the only thing that has worked over 300 years? This just seems like the same line of logic that led to defund the police. The world isn’t a fairyland, sometimes bad things happen
- thephyber 4y agoIf I had to read the subtext, I would say fiscal policy changes can target different price inflations. Demand side inflation is more affected by monetary policy. Supply side inflations are less so, hence other tools might be better at targeting them. Baby formula inflation? Allow imports and authorize more venders.
- dllthomas 4y agoMeans tested welfare and progressive tax rates are two examples of countercyclical policies that react automatically without needing congress to change the rules in response to individual cycles.
- thephyber 4y agoI think the parent understood that and jumped straight to laughing at the possibility of fiscal policy changes working, because Congressmembers are… not necessarily technocrats.