View Single Post
  #5 (permalink)  
Old 04-08-07, 08:54 PM
WallStGolfer31's Avatar
WallStGolfer31 WallStGolfer31 is offline
Moderator and Academic
 
Join Date: Dec 2005
Posts: 545
You do know the fed has many other tools to adjust inflation, like money supply. I read what your saying right, I was just trying to respond previously to what you're implying, not to what you're saying.


I mean this in the least offensive way possible, but I'm not sure you completely understand how monetary policy works. Check out some more background information concerning the Philips curve, review the AS-AD/IS-LM models, the natural rate, and the conditions concerning both short and medium run equilibrium. These in combination should clear things up.
Reply With Quote