Interesting post by Joe Gagnon about possibilities of monetary policy, i.e., policy conducted by the central bank, to exert fiscal influence by buying assets rather than only acting through interest rate and the yield curve.
What I find surprising is the willingness to allow a small group of unelected and unaccountable technocrats to operate what is essentially a command system in micromanaging the economy. Is this consistent with the version of market capitalism that the Peterson Institute is promoting, or is it sliding down the slippery slope?
Peterson Institute for International Economics
There Is No Liquidity Trap: Understanding 21st Century Monetary Policy
Joseph E. Gagnon | Senior Fellow
(h/t Mark Thoma at Economist's View)
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