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IPFS News Link • Federal Reserve

Print Money. Mail Everybody a Check.

 America has grown desperate for smart ideas to revive a flagging economy. Sunday night in the Financial Times I read one of the most desperate: an op-ed by UCLA economist Roger Farmer arguing that the Federal Reserve should deliberately re-inflate a new asset price bubble to goose the economy. It’s a #slatepitch too far for me, but the conclusion is driven by two fairly reasonable arguments. One is that the economy continues to suffer from weak aggregate demand.The other is that reviving the economy through large-scale public works expenditures is likely to be ineffective and inefficient. The former is clearly correct—unemployment remains high and inflation low—and though the latter is somewhat controversial, I think it’s true.

1 Comments in Response to

Comment by Ed Price
Entered on:

The only thing wrong with this idea is that it doesn't say, "Print LOTS of money," and "Give everybody a BIG check." If this were to happen, money would inflate itself out of  value existence, Bitcoin would take over, people would find ways around Government Internet controls over Bitcoin, taxes would be gone, Government and banking crooks would be forced to go somewhere else to try to "squeeze" the people, and Government would become small again.

Oops! Then we'd have the gigantic problem of finding the crooks. At least now we know right where they are.