Doug wrote: > I'd say, "We're done here. We need fiscal policy."
Not sure. One of the legally-mandated goals of the Fed is full employment. I'm no expert in the legal aspects of Fed policymaking, but I'm sure loopholes could be found that -- with due creativity -- would permit the Fed to hand cash directly (or almost so) to communities, working people, municipalities, etc. If the Fed can buy 1 trillion USD in mortgage-backed securities, then it could in principle be able to buy securities issued by the City of Detroit or the Boro of Brooklyn or financial vehicles created by them ex professo. If these measures were obstructed politically, then the Fed could respond politically demanding publicly that Congress grants it the legal instruments to implement said goal. If the political actions by the Fed were to be blocked, then we could all resign in protest. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
