Re:NY Fed rescues overnight lending market with $53B
by dv_dt on Tuesday September 17, 2019 @05:30PM
(#21000279)
I don't know if its a good idea to continue either, but Japan has been actively doing something similar for a while now. It hasn't caused catastrophe, but it hasn't pulled them into high growth either - but it could be argued that there are other factors affecting the overall economy there (the graying and shrinking of their population for one).
[ Parent
| on HN ]
Re:NY Fed rescues overnight lending market with $53B
by PKop on Tuesday September 17, 2019 @05:57PM
(#21000513)
They don't have the worlds reserve currency nor run twin deficits, fiscal and trade. Their defense is largely supplied by the US also.
So much different outcome for US with large trade deficit and ever growing fiscal deficits. Some argue if we did go the route of Fed monetizing (which almost certainly has to happen) the $ will be value much lower than it is today. This would help to close the trade deficit though, and repatriate some lost industrial capacity, boosting exports.