The Tragic Consequences of Ignoring Economic Realities
Economist George Selgin discusses the tragic consequences of the Federal Reserve's focus on maintaining artificially high interest rates, leading to a collapse in spending and a loss of control over the target federal funds rate. Selgin highlights the flawed belief that monetary policy is solely about interest rates, rather than flows and quantities, and the detrimental impact it had on the economy.In this clip
From this podcast
EconTalk
George Selgin on Monetary Policy and the Great Recession
Related Questions
What are the effects on the economy of cutting federal funds rates?
How does the central bank's policy influence interest rates in the context of the episode Brian Jimerson #4 and the clip Economic Crisis, Currency Trading from Prof G Markets: Margin Calls, Private Jets, Meta Teams Up With Microsoft, and Unpacking the Fed, and the clip Fed's Impact on Economy?
Would money printing be a mechanism to prevent U.S. defaults in the context of the episode 1580: Economy Crash 2021 With Peter Linneman and the clip Monetary Policy Debate, particularly in relation to Ray Dalio's warning for the banking collapse, the US dollar, and the upcoming recession in the episode ECONOMIC CRISIS: Ray Dalio's Warning For The Banking Collapse, US Dollar & Upcoming Recession, as well as the clip Currency and Responsibility?