Minimum wages in the USA were far too low. Plus a range of other issues.
They should use 40 billion a month to employ people to build things or work in and build state owned and run hospitals.
Suddenly the economy would then fix itself.
Discuss.
Minimum wages in the USA were far too low. Plus a range of other issues.
They should use 40 billion a month to employ people to build things or work in and build state owned and run hospitals.
Suddenly the economy would then fix itself.
Discuss.
Minimum wages in the USA were far too low. Plus a range of other issues.
They should use 40 billion a month to employ people to build things or work in and build state owned and run hospitals.
Suddenly the economy would then fix itself.
Discuss.
I really don't know what all the fuss is about...the markets were have probably been pricing this latest round of printing in already. The next week or so will tell I would think. The gold price has been pricing it in yeah?
CanOz
I really don't know what all the fuss is about...the markets have probably been pricing this latest round of printing in already. The next week or so will tell I would think. The gold price has been pricing it in yeah?
CanOz
I don't know much about monetary economics. I wonder if anyone does? If you were to argue that economic growth requires growth in the money supply then if the financial sector is not growing the money supply then the central bank can step in to grow the money supply.
The problem is that you can't trust people to implement balanced economic policies. I always laugh when people argue that Keynesian-ism is responsible for the massive public debts in much of the developed world. Yet Keynes didn't argue that governments should run deficits throughout the entire business cycle - quite the opposite. Same with monetarism. Theoretically, when money supply over-inflates, the Fed will need to absorb money and hike up interest rates again. But will that happen and can it happen politically if we end up back in the stagflation of the 1970s - high unemployment and high inflation?
Pretty hard to fix a problem when you vote in a president to "change" things and he employs the same turkeys that created itor do they want to fix it
(Reuters) - The U.S. central bank on Thursday said it will launch a fresh round of bond-buying to stimulate the economy, purchasing $40 billion of mortgage debt each month until the outlook for jobs improves substantially.
Pretty hard to fix a problem when you vote in a president to "change" things and he employs the same turkeys that created itor do they want to fix it
Very, very true. Neo classical economists whose theories have been proved wrong stimulating the economy through debt to try and do something without attacking the crux of te problem. No idea. Why don't they hire someone with different viewpoints - Neo Keynsians and Austrian economists. Istead we get the same robots from the same universities.
If the economie was truly run in a Keynsian fashion then instead of debts there would have been reserves and government would have been reducing spending during the good times (reducing the bubble) instead of increasing. If they then had the reserves instead of the debt they could have been building infrastructure now to make the economy more competitive as well as reducing unemployment.
Unfortunately this is against politicians interests.
largely agree with an asterisk next to infrastructure (ie what types),
they dont hire people with different orthodoxy cos basically they are constantly at war, how would you go seeing a Steve Keen at the RBA (I wouldnt be over-joyed tbh) or a Jim Grant in the Fed. "The sate of macro is good" (blanchard 08), they see crises as an aberration to their econometric modelling (like modelling works well - LCTM, climate models et al), and dont wanna throw the baby out with the bathwater...
Good point. Reminds me of a joke.
A physicist, a chemist and an economist are stranded on an island, with nothing to eat. A can of soup washes ashore. The physicist says, "Lets smash the can open with a rock." The chemist says, "Let’s build a fire and heat the can first." The economist says, "Lets assume that we have a can-opener..."
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