To: expat_panama
The Fed prints money is an expression. However, the Fed DOES cause inflation with loose monetary policies that are designed to stimulate lending. Since credit and money are fungible, if you inject excess liquidity into the system via credit expansion then you have too many dollars chasing too few goods and services.
76 posted on
07/04/2010 8:13:19 AM PDT by
misterrob
(Thug Life....now showing at a White House near you....)
To: misterrob
The Fed prints money is an expression. However, the Fed DOES cause inflation with loose monetary policies that are designed to stimulate lending. Since credit and money are fungible, if you inject excess liquidity into the system via credit expansion then you have too many dollars chasing too few goods and services.Thanks for the incisive response. Interesting how he snuck that one in there. Makes me suspicious of his motives.
79 posted on
07/04/2010 9:46:34 AM PDT by
FreeKeys
(Collectivists take OPM (other peoples' money) by force and pose as benefactors until it runs out.)
To: misterrob
"...the Fed DOES cause inflation with loose monetary policies..."OK We've got low interest rates, but where's the inflation?
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