5 ms·

as a first order effect, sure. but do you agree they have resulted in the inflation which causes our debt-burden/GDP to rise?

• dools 3y ago
  No I don’t, there was potentially some inflation due to fiscal stimulus but mostly due to supply chain issues. The continuing inflation is caused by interest rate increases, ie. the interest rate sets the inflation rate.
  • dragonwriter 3y ago
    If nothing else, your argument that monetary policy levers work exactly the opposite way that conventional economics says they do is amusing.
    • dools 3y ago
      Even more amusing is that I’m right!
      • dragonwriter 3y ago
        If you were right, Fed policy would drive the nation into an unbreakable positive feedback loop (irrespective, really, of preexisting conditions because the conventional economic levers would always drive the nation the exact opposite way intended) until conventional understanding of monetary policy was abandoned. The fact that this hasn't happened pretty clearly disproves your understanding: the conventional understanding may be wrong in some way, but its not inverted.