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There's actually a potential issue here - the money supply is contracting, which yes results in lower inflation but also is really, really unstable and could re
by ameister14 3y ago
There's actually a potential issue here - the money supply is contracting, which yes results in lower inflation but also is really, really unstable and could result in serious issues for the economy if the labor market weakens any significant amount.
- alfalfasprout 3y agoPresumably the fed can pivot the other way when needed. That's also a big reason they want to tamper down inflation as quickly as possible while not breaking everything. It gives them more wiggle room to reduce rates when needed without triggering high inflation again.
- imtringued 3y agoJust tax people for being indecisive and delaying their decision making. I know this is an unpopular proposal even though mathematically it works and is simple to implement.