Friday, April 19, 2019

Brian Chappatta —Fed Should Buy Muni Bonds to Fight the Next Recession

Say what you will about modern monetary theory, but it’s worth asking why it’s assumed that states in America, which wields the power of the world’s reserve currency, should turn to draconian austerity measures when the going gets rough. After all, no political party at the federal level even pretends to care about budget balance anymore. Governors, on the other hand, must spend within their means and consider trade-offs, whether they’re a Democrat or Republican. To their credit, many have chipped away at long-term problems. 
When the next recession comes around, though, they might not have the tools to go at it alone. They’re going to need a lift. The Fed should stand ready to provide that boost.….
NewsMax Finance
Fed Should Buy Muni Bonds to Fight the Next Recession
Brian Chappatta | Bloomberg Opinion columnist covering debt markets, previously covered bonds for Bloomberg News, and is a CFA charterholder

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