Wednesday, March 02, 2022

MONETARY Policy?

There are at least a few Intellectualoids-on-the-Radio who tell you that the inflation is due to "monetary policy."

They are half-wrong.

Back when Les Aspin was my Econ teacher and the text was Samuelson, "monetary policy" belonged to the Fed and had to do mostly with interest rates.  Back then, the Fed also purchased Federal debt from the commercial banks, pushing money into the system; they might also sell Federal debt, sucking money OUT of the system.

But what we have now is a FISCAL, not MONETARY problem.  It's the wild, drunken, spending spree of Trump and Biden (and all their predecessors back to 1996 or so.)

You could argue that it is both; that's within reason.

But the reason the "conservatives" stay away from FISCAL policy is simple:  they'll indict Trump.

They're moronic that way.

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