I'm not the one modding you down, and I should clarify: by "inflation" I mean "increase in prices", as opposed "greater monetary availability".
The fed is, with QEx attempting to provide greater liquidity, thinking that this will cause price rises, and in turn spur spending and transactions. Of course its having no effect whatsoever. String pushing at its best.
Also: the only people who want to borrow right now are those who are borrowing just to stay fed. Rightly, the banks dont want to lend to them.
by "inflation" I mean "increase in prices",
= price inflation
as opposed "greater monetary availability"
= monetary inflation
You can't control price inflation/deflation, you can only control monetary inflation.
It doesn't matter why the banks don't want to lend, the point is, Bernanke's plan can't work until they do. (But let's be honest: it won't work in any case.)
You can't control price inflation/deflation, you can only control monetary inflation.
I disagree. Gas prices go up when the dollar drops (not the only reason, but a guaranteed one). Make the yuan and the yen vastly more expensive, or just block imports at the port, and prices will go up. Maybe even to the point where it will be cost effective to pay americans to make them.
The fed is, with QEx attempting to provide greater liquidity, thinking that this will cause price rises, and in turn spur spending and transactions. Of course its having no effect whatsoever. String pushing at its best.
Also: the only people who want to borrow right now are those who are borrowing just to stay fed. Rightly, the banks dont want to lend to them.