Balance sheet could be in regular Fed toolkit, Daly suggests

Bloomberg/Jeanna Smialek/2/8/2019

“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. . . .

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