Originally Posted by Running_Man
Yes in the 100 years before central banks in the US net inflation was Zero, inflation since then........ The main issue is merely that citizens once it was shown FED could prevent a downturn with monetary policy have gotten more and more power to stop them. I think whatever happens now is unknown because this type of monetary policy has never been tried. That the FED was able to stop the economic downturn that would have been severe and led to many bankrupt companies is for sure, issue is money used to save them is doing what? Long term interest rates around the globe have NEVER been this low. You want your ten year investment in Germany? 0.18% WOW!! And that country has had economic collapse twice in the last 100 years
So you would accept a great depression and high unemployment in order to have zero inflation? That seems a ridiculous trade.
If your only goal is zero inflation, wouldn't the single best way to achieve that to be to alter the fed funds overnight rates to maintain 0% inflation instead of 2%?
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