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77bagels77 t1_iu1o4j7 wrote

Reply to comment by rushmc1 in [OC] Percentage of countries with over 6% inflation by robs62

  1. No, this is wrong. Monetary policy creates inflation when the supply of dollars increases faster than the size of the economy backing those dollars. Often, this is because of government programs that inject trillions of made up fairy dollars into the economy. The result is that demand for everything goes up, and prices go up.

  2. The economy crashes when the FED tries to roll back demand by making borrowing more expensive.

  3. Corporations that are run poorly and have special ties to lawmakers (e.g., automakers and by extension their unions, for example, who donate to Democrats) are bailed out.

  4. Repeat only if you cannot learn anything from this.

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Maleficent_Rope_7844 t1_iu34z6q wrote

Yes, but, the fed didn't cause high energy prices. To the extent that this inflation is caused by high energy prices, the blame lies on corporations and the war in Ukraine.

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0tt0attack t1_iu8udam wrote

There are way more factors than the FED monetary policy. If it was that simple we would never inflation or a crash. To be fair, the government has been pretty successful from preventing major economic swings since 2009. So yes, it seems that we are learning. However, there are no guarantees that we may not have a major crash or down turn.

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