et cetera. And then we get into a really discombobulated place where the Fed is trying to run monetary policy at the same time maintaining credit facilities to prevent financial stability. And then you have the government, which is motivated, or the fiscal side of the government, which is motivated by stronger political pressures, trying to maintain political stability. Everything's kind of at each other at cross directions here. Yeah, no. And that's certainly a risk. And we sort of saw this where, especially when inflation started roaring, some countries were sending out checks to citizens to help them bear the cost of inflation. And you can imagine how that immediately would make inflation worse. So these things are always at crossroads. And this is sort of an evergreen problem, especially between the fiscal and monetary authority. I mean, there are other examples too, where the Fed goes out and buys long-term treasuries because it's engaging in QE, not currently, but that's a common (28/36)
You are viewing a single comment's thread from: