I’m glad in some way that voters didn’t buy this BS. It assumes that the government can act as irresponsibly as possible with fiscal policies and the Fed has to bear all responsibility for fixing the issues that arise out of it.
I’m glad in some way that voters didn’t buy this BS. It assumes that the government can act as irresponsibly as possible with fiscal policies and the Fed has to bear all responsibility for fixing the issues that arise out of it.
I think the point here is a bit semantic. It is the Fed that chooses between high inflation and high interest rates -- you can have less of one if you have more of the other. But they both make voters angry, and you need different fiscal policy if you want both inflation and interest rates to be modest. That's what only Congress can produce.
Yes, agreed and apologies for that. I also do believe that swift Fed action can actually smooth this out (stop inflation from getting out of hand and thereby require a less harsh response) and that the Fed did in fact act too slowly, but that’s a bit of a separate question.
I’m glad in some way that voters didn’t buy this BS. It assumes that the government can act as irresponsibly as possible with fiscal policies and the Fed has to bear all responsibility for fixing the issues that arise out of it.
I think the point here is a bit semantic. It is the Fed that chooses between high inflation and high interest rates -- you can have less of one if you have more of the other. But they both make voters angry, and you need different fiscal policy if you want both inflation and interest rates to be modest. That's what only Congress can produce.
Yes, agreed and apologies for that. I also do believe that swift Fed action can actually smooth this out (stop inflation from getting out of hand and thereby require a less harsh response) and that the Fed did in fact act too slowly, but that’s a bit of a separate question.