DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post

**Ifroham4** · 10-28-2009, 03:04 AM

I would add to KH's post that the Fed has zero practice in removing this magnitude of stimulation. In theory, there's nothing to it. But in reality, the Fed could fvck it up so that we have deflation or inflation. To guard against a possible fvckup into continued deflation, the Fed might accept a few years of elevated inflation.

Dan, the upslope generally tends to be gentler than the downslope. I agree that they will err toward inflation, and that's fine with me. In fact, it should be their stated policy (targeting price path rather than instantaneous inflation rate)

10-28-2009, 03:04 AM	#7
Ifroham4 Join Date Apr 2007 Posts 5,196 Senior Member	I would add to KH's post that the Fed has zero practice in removing this magnitude of stimulation. In theory, there's nothing to it. But in reality, the Fed could fvck it up so that we have deflation or inflation. To guard against a possible fvckup into continued deflation, the Fed might accept a few years of elevated inflation. Dan, the upslope generally tends to be gentler than the downslope. I agree that they will err toward inflation, and that's fine with me. In fact, it should be their stated policy (targeting price path rather than instantaneous inflation rate)
	Quote