What is missing from the debates over monetary policy today is the understanding that the Fed was not established to control inflation. It was created to prevent financial crises by acting as a lender of last resort in times of distress. Indeed, that’s exactly what the Fed is doing now — opening up its lending facilities to banks in need. But rather than focus on maintaining financial stability, the Fed has become obsessed with controlling inflation, something it cannot really do without causing either a recession or a financial crisis (or both).
Related Articles

Deregulation
Yanis Varoufakis: Globalisation is stuck in a trap. What will it be when it breaks free?
January 14, 2018
Mathew D. Rose
Deregulation, Economics, Environment, Finance, Globalisation, Inequality, Neo-Liberalism in the EU, Solutions, Sustainability
0
Globalisation has been caught in a steel trap of its own making. Its crisis is due to too much money in the wrong hands. Yanis Varoufakis analyses the world crisis and offers concrete solutions. Read […]

Economics
Jacobin: It’s Not Just the Gig Economy — Precarious Work Is Everywhere
A new study finds insecurity and precariousness is widespread across the economy. Read the article HERE.

Austerity
Bill Mitchell: European Union – business as usual as the madness continues
December 3, 2019
Mathew D. Rose
Austerity, Economics, EU politics, EU-Institutions, Finance, Financial Institutions, Neo-Liberalism in the EU
0
“With another cyclical downturn approaching, the European Commission continues to conduct its affairs in a sort of time warp, divorced from reality.” Read here
Be the first to comment