Does anyone know why the FED has to keep manipulating the supply of money?
Let's say we have a very responsible government which taxes well, reinvests well in productive work, private markets that operate smoothly, why does the FED have to step in periodically to raise/lower interest rates (outside of very bad circumstances).
Another way of asking this question is, "What is a neutral rate?" or "What is an economy in equilibrium?"
Let's say we have a very responsible government which taxes well, reinvests well in productive work, private markets that operate smoothly, why does the FED have to step in periodically to raise/lower interest rates (outside of very bad circumstances).
Another way of asking this question is, "What is a neutral rate?" or "What is an economy in equilibrium?"