Monday, August 29, 2022

Bill Mitchell — Elites using monetary policy to deal with paranoid fears that power might shift towards workers

What a world we live in where we are snowed with propaganda from the elites about how the only way forward is that we accept “pain” or “sacrifice” to prevent some inflationary catastrophe from accelerating out of control and that if workers dare seek some cost-of-living redress as corporations go for broke in their margin push, then the pain the policy makers will inflict will be greater. The annual gathering of the elites at Jackson Hole in Wyoming over the last days has been one of those ‘can you believe this lot’ moments. First, we had the US Federal Reserve boss almost joyfully telling Americans that he will inflict pain on them because “these are the unfortunate costs of reducing inflation”. At the same event, the ECB Board member Isabel Schnabel told the gathering that the central banks had to inflict higher unemployment rates to control inflation to stop wages getting driven by inflationary expectations. And then we look at wages growth in Europe and see that real wages are in free fall (dropping 5.9 per cent in the June-quarter 2022)....
Bill Mitchell – billy blog
Elites using monetary policy to deal with paranoid fears that power might shift towards workers
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

2 comments:

Matt Franko said...

“ we had the US Federal Reserve boss almost joyfully telling Americans that he will inflict pain on them”

NO WAY in hell that happens if Trump President…

Matt Franko said...

Bill, like the Fed, appears ignorant of the QT…

All either talks about is the risk free policy rate….no mentions of the QT… which is yet to be implemented…