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also, it's easier to fight inflation because you can always increase the interest rate. With deflation once you reach zero there isn't anywhere realistically el
by chasd00 3y ago
also, it's easier to fight inflation because you can always increase the interest rate. With deflation once you reach zero there isn't anywhere realistically else to go. Negative interest rate have happened momentarily but it's not like the US fed can realistically set the rate to -1%
In the depths of the financial crisis in 2008/9 I remember Bernanke saying he would fly helicopters and drop bags of money if it came to that in order to fight deflation taking hold.
- Glacia 3y ago>With deflation once you reach zero there isn't anywhere realistically else to go. Huh? just literally print more money.
- imtringued 3y agoUniversal basic income or helicopter money is deeply unpopular. That money will not end up in the hands of those who need it.
- tharga8616 3y agoLol, UBI is precisely money directly onto the people's hands. Haven't you heard of GiveDirecly NGO?
- Glacia 3y agoYou dont need "helicopter money". Just create money and spend it on something. Build roads, rails, tanks, whatever. >That money will not end up in the hands of those who need it. Yes, but it's irrelevant for this discussion.
- chasd00 3y agoThat’s what a zero interest rate is, money for free.