The 2008 Financial Crisis
Approximately every 50 to 80 years the world experiences an economic meltdown of catastrophic proportions. The one most people think of is the “Great Depression” of the 1930s. But the more recent...
View ArticleHow Does a Country “Export” its Inflation?
This question is interesting because most countries can’t just export their inflation because their currency is exclusive to their country. However, the U.S. is in the unique position of being the...
View ArticleWhat is the Reverse Wealth Effect and Why Does the FED Want It?
To understand the reverse wealth effect first we must understand the economic concept of the “Wealth Effect”. According to Economics Help the “Wealth Effect” occurs as “Rising personal wealth has a...
View ArticleHow Loose Monetary Policies Cause Recessions
Advocates of Keynesian economics believe the Federal Reserve should pursue policies that will prevent the possible decline of the economy into a liquidity trap. But what is a liquidity trap? Economic...
View ArticleStock Market Ignores Lower Inflation in February
The Bureau of Labor Statistics reported that Annual Inflation fell from 6.41% in January to 6.04% in February Monthly inflation was 0.56% for February 2023, compared to 0.91% in 2022. Despite the...
View ArticleCan the FED Engineer a “Soft Landing”?
The ultimate dream of the Federal Reserve and those who believe in the FED’s omniscience is for them to engineer a soft landing, i.e., curbing inflation without sending the economy into a deep...
View ArticleIf Trump Won the 2020 Election Would Inflation Be Lower?
Created by Bing A.I. I recently saw this question on Quora and thought it was interesting. It made me think. Does the President control inflation? My first thought was that inflation is controlled by...
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