Akvod on 08 May 2010
| mrstickball said: I'd say I'm a monetarist. I am not a Kenysian in the fact that the position supports deficit spending during recessions...I believe that unless the fed actually has the money on hand, then they should not spend what they don't have. |
The Fed has no money on hand... all it does is print, and exchange for T-Bills. The Federal government? If you're asking the Fed to always balance the budget, like the EU wants to, then you completely neuter its abilty to do any fiscal policy.
What do we do, when we are at or near 0% interest rates? Cut the rate to -1%? O.o
