Which is interpreted to be ‘We must avoid deflation’ by the Fed. Because these two statements are one and the same.
Between the choice of widespread unemployment vs fixing inflation, the policymakers came up with the current strategy. Lower inflation (aka: first derivative of price chances), which should hold jobs steadier than other options.
The Fed has a very blunt instrument for economic policy. It’s either lose jobs but fix inflation (aka higher rates), or more jobs but inflation gets out of hand (aka lower rates).
That’s just how the world works. Those are the only two choices the Fed has.
There’s two directions. You can raise rates, or you can lower them. Raising rates causes job losses but culls back inflation. Lowering rates increases the number of jobs but causes inflation to go up.
Its a fucking number… Because its a number, there’s only two directions to go. Up or down. Or zero if you want to split into a 3rd option for some reason. But not much aside from “raise”, “hold” or “lower” rates.
Now comes the political debate. Should we have been raising rates last year? Or should we have been lowering rates last year? And survey says… Oh right, liberals were asking to lower rates (ie: making inflation worse). Ding ding ding!! It pays to be a dumbass, because its the only way you can keep your petty little brain straight, isn’t it? You don’t like facing reality of your side’s opinions, do you?
Its not just conservative dumbasses who are unable to foresee basic problems with their politics, but also far left liberals who demonstrate ignorance. Thank you for making an example of yourself.
Soccer moms say ‘I want to keep my job’.
Which is interpreted to be ‘We must avoid deflation’ by the Fed. Because these two statements are one and the same.
Between the choice of widespread unemployment vs fixing inflation, the policymakers came up with the current strategy. Lower inflation (aka: first derivative of price chances), which should hold jobs steadier than other options.
The Fed has a very blunt instrument for economic policy. It’s either lose jobs but fix inflation (aka higher rates), or more jobs but inflation gets out of hand (aka lower rates).
That’s just how the world works. Those are the only two choices the Fed has.
The only 2 options hahaha. Kk.
Do you not know how the Federal Funds Rate works?
I do
https://youtu.be/wz-PtEJEaqY?si=pK60f5dXtzyf-Ik4
Lovely.
There’s two directions. You can raise rates, or you can lower them. Raising rates causes job losses but culls back inflation. Lowering rates increases the number of jobs but causes inflation to go up.
Its a fucking number… Because its a number, there’s only two directions to go. Up or down. Or zero if you want to split into a 3rd option for some reason. But not much aside from “raise”, “hold” or “lower” rates.
Now comes the political debate. Should we have been raising rates last year? Or should we have been lowering rates last year? And survey says… Oh right, liberals were asking to lower rates (ie: making inflation worse). Ding ding ding!! It pays to be a dumbass, because its the only way you can keep your petty little brain straight, isn’t it? You don’t like facing reality of your side’s opinions, do you?
Its not just conservative dumbasses who are unable to foresee basic problems with their politics, but also far left liberals who demonstrate ignorance. Thank you for making an example of yourself.
nah bro, we just need to go back to the gold standard and elimintae the fed
that will fix the economy and deflate prices and make surge job growth…