Re:Soaring Student Debt Prompts Calls for Relief
by dragonwriter on Tuesday September 13, 2016 @07:49PM
(#12493193)
> Federal Reserve attempts to stoke inflation in order for the economy to reach full employment
No, the Federal Reserve attempts to provide easy money to spur employment, balancing that goal against the competing goal of controlling inflation. The Fed does not try to stoke inflation to drive employment (especially since inflation doesn't drive employment, though employment can help drive inflation.)
Re:Soaring Student Debt Prompts Calls for Relief
by toomuchtodo on Tuesday September 13, 2016 @08:29PM
(#12493404)
You're right, I misspoke. The Federal Reserve, through its mandate to obtain full employment conditions, creates inflation as a side effect.
Re:Soaring Student Debt Prompts Calls for Relief
by codyb on Tuesday September 13, 2016 @10:37PM
(#12493900)
Inflation's been really low recently.
Re:Soaring Student Debt Prompts Calls for Relief
by toomuchtodo on Tuesday September 13, 2016 @10:51PM
(#12493953)
We've barely scratched full employment. Who knows how long we'll be able to maintain it. The Fed has no room to cut rates if a slowdown occurs without going negative and several economic indicators are pointing to a slowdown.
Fiat currency is a shared delusion of value with invisible hands exerting forces to enforce certain behaviors (the Federal Reserve attempts to stoke inflation in order for the economy to reach full employment, arguably unsuccessfully, while technology and cheap Chinese labor is having enormous deflationary effects, with the result being real estate and equities turning yet again into asset bubbles); never be fooled that we're somehow "losing" value by forgiving debts at the national government level.