This makes no sense. See also: fiscal policy - ThreadSky

kairyssdal.bsky.social • 22 days ago

This makes no sense.

See also: fiscal policy

I don’t understand why no one in congress has proposed amending The Federal Reserve act to include the following addition among the mandates

“Reducing the federal debt-to-GDP ratio to sustainable levels.”

Keep inflation and employment the same , just add to the equation

#econsky

Comments

jermany.bsky.social•22 days ago

But he said it so pontifically, and that’s really all that matters to us serfs.

dscrad.medsky.social•22 days ago

Get back to work. Billionaires gotta billionaire.

dhfeldman.bsky.social•21 days ago

Let’s see. The Fed already has a dual mandate but only one policy instrument for hitting two targets. He wants to give the Fed a 3rd mandate for its solitary tool (monetary policy).

parrfamily.org•22 days ago

Isn’t this one of the measures that form part of the Euro currency membership club rules?

jmwarren.bsky.social•21 days ago

In other words the Fed should have the authority to raise taxes and cut military spending. Works for me

pb102.bsky.social•22 days ago

These smart guys sure don't seem that smart.

kto1243.bsky.social•21 days ago

Where are you on your own show?

pletzs.bsky.social•22 days ago

Always remember, he's the genius who hired Nico Harrison in the first place.

name-is-the-byline.bsky.social•21 days ago

This pretty much proves that billionaires didn't become billionaires by virtue of having good ideas or understanding anything.almost all were born into privilege and lucked into billions.

burntbulb.bsky.social•21 days ago

Well Congress doesn't seem interested anymore, why not make the Fed do it? They're already in the business of making politically unpopular economic decisions 😏

burntbulb.bsky.social•21 days ago

Honestly there is a kernel of sense in this; if I didn't think it was an impossibly narrow needle to thread and almost certainly untenable given the current erosion of independence in executive agencies… maybe give the Fed the power to set tax rates?They're already the hatchet man….

cubesfan.bsky.social•22 days ago

I was unaware that the Fed was in charge of taxes and raising money and allocating funds. It's almost as if there is a group that does do this, but it isn't the Fed. Hmmm? Who is it? On the tip if my tongue...tastes terrible... ah yes, Congress.

sueq-b.bsky.social•22 days ago

Thank you! I read that last night and did the confused dog look. I always appreciate your posts.

madtownmama.bsky.social•22 days ago

I think it’s a dangerous assumption that the ideas of very wealthy men are inherently correct. We’re seeing the consequences of this play out in real time.

gawater.bsky.social•22 days ago

He’s going to hop into bad with Modern Monetary Theory without realizing it.

rockymountaincat.bsky.social•21 days ago

IMO hes been there awhile already.

nonisonthebus.bsky.social•21 days ago

Excellent mis-type…I’m going to use it. “Hop into bad…” 😏

fredgrott.bsky.social•21 days ago

I indicated that his economic theories are as bad as Trump's F grades in economics.

furtivephilologist.bsky.social•21 days ago

iF oNlY tHeY rAn ThE gOvErNmEnT LiKe A bUsInEsS!

craigynoodlehorn.bsky.social•20 days ago

National Debts hate this one simple trick!

hopeislikethesun.bsky.social•22 days ago

See also: The Constitution

abruinsplayer.bsky.social•22 days ago

It’s quite scary how little these people understand and yet hold so much influence. It’s why they’re in the private sector I guess 🤷

jhdiscenza.bsky.social•21 days ago

What makes sense is to delete the full employment goal. The Fed has no tools to boost employment. All its tools can do is affect price levels. And those effects take months to appear.

hawkeyestate.substack.com•22 days ago

That time I was pitching the Sharks that the Fed has no control over federal spending and tax policy

andimann.bsky.social•21 days ago

jnbnntt.bsky.social•21 days ago

This is a completely unnecessary complication. Price stability and maximal employment is already the most delicate of dances.

Everyone hates the Fed, which is among the reasons we know they're doing a great job.

dustinwing.bsky.social•22 days ago

Maybe Canada is on to something. "Powell for President" does have a nice ring to it🤔

j-lastcoolletter.bsky.social•21 days ago

I had the quoted account muted lol. Not blocked because he isn't evil, just very confidently wrong a lot of the time.

scurvydawg2112.bsky.social•22 days ago

First, let's define sustainable levels. Then, let's mandate Congress does something responsible with the basket of data we already have that says they're failing. Maybe we tie that ratio to the taxes on the rich. The Fed is already fighting too many tides with limited weapons.