Tuesday, November 10, 2015

Another main economic theory

Slowing growth solves growing inflation.

The Fed is supposed to have equal concerns for stable prices and full employment.  But really, they have decided they are the masters of the universe and focus on growth.  I am starting to think they can't affect growth much if at all.  They certainly can affect inflation.

Growth and Inflation are mixed up.  It is believed inflation is growth.  So the Fed tries to increase inflation to get growth.  Then when wages go up too much they try reduce wage growth by decreasing inflation.

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