“Imagine that the Fed were to announce that, a year from today, it would pick a digit from zero to 9 out of a hat. All currency with a serial number ending in that digit would no longer be legal tender. Suddenly, the expected return to holding currency would become negative 10 percent.
That move would free the Fed to cut interest rates below zero. People would be delighted to lend money at negative 3 percent, since losing 3 percent is better than losing 10.”
“Of course, some people might decide that at those rates, they would rather spend the money — for example, by buying a new car. But because expanding aggregate demand is precisely the goal of the interest rate cut, such an incentive isn't’ a flaw — it’s a benefit.”
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An insane idea ... however, we have learned that progressive liberals love ideas like this; and do attempt to make laws of stupid ideas.
God have mercy on your people in America.
Bookmarking your home page. Great comment.