Fed monetary policy causes inflation

Discussion in 'Economics' started by vince111, May 13, 2008.

  1. vince111


    Stagflation is here. It's a reality in the United States.

    Low economic growth. low employment growth. or no growth combined with rising prices in food, gas etc...

    high prices reduce demand.

    high prices reduce demand.

    demand for products and services is what stimulants the economy. FED is not helping the economy when it causes prices to rise. diluting the dollar or devaluing the currenc and buying power of the currency is theft by the gov't.