Submitted by Guy Haselmann, Macro Strategist
Dangers Of Dollar Debasement (from MMT)?
For decades, the Federal Reserve claimed that monetary policy worked on an 18-to-24-month lag. Today, the Federal Reserve says that it is data dependent. It cannot be proactive and reactive simultaneously.
By making this shift, the Fed will fail, once again, to focus proper attention on longer-term consequences of its actions, and now the stakes are higher. The Federal Reserve’s post-crisis policy of 0% interest rates and quantitative easing has already been accused of widening inequality, creating asset bubbles, fueling indebtedness, and sowing seeds of moral hazard. A return to these experimental accommodative measures today risks creating a catastrophe. Fueling its pivot is an old failed theory which
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