“...The problem is that the Federal Reserve increased its balance sheet by nearly $5 trillion since early 2020 and set off a tsunami of demand. In the sort of monetary theory that prevailed while the US economy was reasonably sound, a surge in the money supply was supposed to lead to higher inflation.
The difficulty with the Quantity Theory of Money championed by Milton Friedman and others is that the same amount of money can have different impacts on prices at different times. For example, bank lending has collapsed in the US since the pandemic, which means that the trillions of additional reserves that the Fed put into the banking system haven’t translated into bank credit.....”
A lot of people say this monetary policy makes no sense at all.
I think it makes perfect sense.
A deep state intermediary tells the fed member that they should do they were asked and the wire transfer to the secret account will go through. Otherwise they will get epsteined.
See, perfectly understandable
Pump trillion of dollars into the US Economy by stimulus spending and bond buying and then are surprised when it triggers demand driven inflation.
Truly we are governed by idiots
Welcome back, Carter.
Gaslighting and gibberish. They just flood us with words.
by far one of Trump’s biggest mistakes was appointing Powell Chairman of the Fed.
PERUSE LATER.