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Dan Jamieson's avatar

MR. VOLCKER: The Federal Reserve has a long history with operating

credit controls.

MS. FOX: From war time.

MR. VOLCKER: And they went on for 10 years more after the war.

Mortgage & consumer credit controls went on for quite a long while.

We should still have them. [Laughter] 72

--As cited from Tankus, 2022, "The New Monetary Policy." Modern Money

Network.

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Sam Buffington's avatar

On the simple side, I'll just say that I think we've figured out how to not have recession, we just pump money into the system. So the problems that methodology creates are apparently less painful than recession? For the last 14 years or so, we've talked about raising the interest rate. At the first hint of economic slowdown, we stop raising the rate, or even lower it. And if the slowdown, or the threat of slowdown, persists? Well, pump some money directly into the systems. Say, like $5 trillion+ for Covid relief. I'm not saying good or bad, just that it seems that's where we are.

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