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Ben Swift's avatar

"tackling inflation would be easier if the Fed could pull money out of people’s checking accounts"

The Fed can't do this, but the Feds certainly could, through the mechanism of a wealth tax or raising marginal rates. Your entire argument (which I certainly agree with) offers robust support for managing the economy more through direct fiscal transfers and taxation; much less through the Fed and rates; and not at all through QE. Replace modern monetary policy with old-school fiscal policy, in other words.

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Philip Feldman's avatar

TLBS, you are a true gem in a sea of dull rocks.

It is complex questions that I am after to explain the macro world we live in, and everyone seems to have dull answers to questions I didn't ask. Your writing is data driven, intelligent and with a different perspective. Makes me ask the questions that make me better prepared for economic events.

Is the fed/government more afraid of inflation or deflation/depression? - (it depends). I have never been more convinced of the trajectory of the economy when I realized that the difference between previous downturns and this one, is severe inflation. And you hit the nail on the head on this question in this article.

Or maybe I am just a perma-bear. Either case, these articles are one of my favourite economic sources, and recommend to anyone interested in understanding things a little better.

Cheers! (Phil)

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