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The traditional way a central bank fights inflation, and take Norway as an example. The central bank raises interest rates, until there are enough bankrupcies
by ThinkBeat 1y ago
The traditional way a central bank fights inflation,
and take Norway as an example.
The central bank raises interest rates, until there
are enough bankrupcies and unemployment rate reaches a high enough level,
The economy cools down.
The nation has low inflation again.
Rinse out and repeat.
They do the direct opposite of bailing anyone out.
Now the US is different.
The Biden administration decided that the best way to fight
inflation was to invent a giant pile og money and hand it out.
Which heats up the economy and should raise inflation .
- TimorousBestie 1y ago> Now the US is different. The Biden administration decided that the best way to fight inflation was to invent a giant pile og money and hand it out. Biden did not invent quantitative easing.
- smileysteve 1y agoIndeed, it was expanded greatly during the admins of Bush and Trump.
- serioussecurity 1y agoI'm sorry you're blaming the Biden admin for a bush era policy why?
- arunabha 1y ago> The Biden administration decided that the best way to fight inflation was to invent a giant pile og money and hand it out Can you provide some references for your claim? IIRC, under Biden, inflation was stoked by the Covid stimulus(arguably necessary to avoid rapid deflation due to Covid, but probably kept for too long) and the Fed moved pretty decisively in the second half of the Biden presidency to raise interest rates rapidly to combat inflation. FWIW, the inflation issue seemed to be under control and heading in the right direction before the administration changed.
- dgfitz 1y ago> IIRC, under Biden, inflation was stoked by the Covid stimulus(arguably necessary to avoid rapid deflation due to Covid, but probably kept for too long) I think you answered your own question.
- walls 1y agoDo you know who was president in March 2020, when that happened? I'll give you a hint: he put his own name on the checks.
- TimorousBestie 1y agoRegrettably, everyone more or less memory-holed this. Biden is held responsible for all the bad things that happened because of COVID, and Trump escapes any blame whatsoever despite, yknow, advocating for bleach injections or whatever that was.
- elevation 1y ago> “you’re going to have to use medical doctors but it’d be interesting to check that” [0] [0] https://m.youtube.com/watch?v=zicGxU5MfwE https://m.youtube.com/watch?v=zicGxU5MfwE
- TimorousBestie 1y agoMan, I forgot that he almost used to sound lucid every once in a while, in those days.
- dgfitz 1y agoThe quote I quoted said, quite literally, “under Biden” I offered no new information
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