Ok, now that i think about it your probably right, the article was talking about the speculation leading up to the fed decision, not the speculation that happens based on the fed decision, so you might have me there........
Yeah, that's all I was pretty much saying. The Fed can't really drive "demand-pull" inflation (which is the traditional inflation we all know about in text books) because the money it prints goes to the banks, and it is those banks who actually determine where it goes. When they speculate and drive up asset costs, they create "cost-push" inflation - better known as commodity inflation. This causes companies to raise prices to cover margins and push that on to the consumer. But the consumer doesn't really get any more money to spend. An argument can be made that the consumer actually has less discretionary money to spend, because they have to spend more on food and energy, etc. Only the government can do "demand-pull" inflation, which is high spending output designed to put more money into consumer pockets, and get them to drive up prices through the ol' inflationary motto of "too much money chasing too few goods". That's more the traditional Keynesian spending argument.
That's why I used "primarily", and clarified that Keynes thought the Fed should not be using deflationary (rising interest rates) tactics during a recession. Your second thought, crowding out, does not apply when productive capacity is below potential and money is sitting in vast, idle pools. Interest rates and bond yields indicate how much competition for money there is right now: zip.
I'm not an macro economics expert and have no power to change anything. And getting into a pointless pissing contest with two foolish boys like you does not interest me. I did read the article you posted max and found it informative and interesting though.
If you have no intention of debating anything posted on a specific thread, , perhaps you should refrain from posting altogether, since you view yourself as a highly enlightened individual who is smarter and more mature than the rest of us, that shouldnt really be all that tough.....
Why bother? Talking to a wooden-headed puppet is plain silly. Max just has a supply-sider's hand up his ass moving his lips for him.
For the exercise, mate, for the exercise. By the way, that's a funny image, needs a supporting graphic, Max likes those.
I:ts funny how you self proclaimed experts who are smarter than the rest of us never want to post your own thoughts on the economy, or economics..... Quite frankly, I already knew that brASS is a useless lowlife who eats dog shit out of a dumpster, but i didnt think you were the same Ricter.....