Balance sheet could be in regular Fed toolkit, Daly suggests
“Federal Reserve Bank of San Francisco President Mary Daly suggested that the central bank could decide to use its balance sheet as a routine part of how it guides the economy, not just as a last-ditch measure to deploy in emergencies.”
USAGOLD note: We used to call it “printing money.” Then we changed the label to “monetization.” After the 2008 fiancial crisis, we renamed it “quantitative easing.” But it is still just plain-old printing money. Now, a contingent within the Fed wants to make it a permanent part of Fed policy with or without the benefit of a crisis. Isn’t that pretty much what Germany did after World War I? They, too, believed it came with no consequences until one day a virulent inflation suddenly took hold. . . .