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re: Hedge fund manager Daniel J. Arbess calls for direct money printing to Treasury

Posted on 5/20/13 at 10:09 am to
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 5/20/13 at 10:09 am to
quote:

At what point would you distinguish staving off a crisis from returning to the standard practice, near zero interest rates, etc, to combat a lagging economy following the crisis, and who would decide that?


Huh? I'm not really following that sentence, but the idea is to keep interest rates at a healthy level until the threat of a deflationary collapse is gone. (EDIT: and to keep them at a healthy level after, never having to resort to ZIRP)

When do you know when to stop? Easy. Whenever inflation returns.
This post was edited on 5/20/13 at 10:18 am
Posted by el duderino III
People's Republic of Austin
Member since Jul 2011
2387 posts
Posted on 5/20/13 at 10:32 am to
I still dont understand how funding only the tax cuts would have enough of an impact on the money supply to not have to augment it with OMO's though. Or is the argument that the Fed should finance all treasury spending until the threat of deflation subsides?

eta: i dont have a subscription so I couldn't even read the full article, if that matters
This post was edited on 5/20/13 at 10:34 am
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21057 posts
Posted on 5/20/13 at 12:21 pm to
I'm not sure any plan which advocates printing more money and making it easier to access in a budgetary since is a good idea

I mean, do we want the dollar to be worth anything anymore?
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