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by imtringued
1938 days ago
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Economies don't exist in a vacuum. There is a demand component and a supply component. The Fed pretends as if influencing the supply component is the only thing that is important. There are parallels to the law of the minimum. >It states that growth is dictated not by total resources available, but by the scarcest resource (limiting factor). [0] The same applies to the economy. If adding more money to the supply side does nothing, that means you already did your job and the supply side is already saturated and you should look for the part of the economy that is lacking in stimulus. [0] https://en.wikipedia.org/wiki/Liebig%27s_law_of_the_minimum |
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