Monetary Policy: The Negative Real Shock Dilemma

Imagine a negative real shock, like an oil crisis, just hit the economy. How should the Fed respond?
Decreasing the money supply will help with inflation, but make growth worse. Increasing the money supply will improve growth, but inflation will climb higher. What’s the Fed to do?!
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[@ANigerianPrince]

"End the fed" is a mindless meme.

[@geraldmiller1170]

Hello

[@byrdiethemighty]

the solution is to have a planned economy, youre welcome

[@dunningkruger9122]

If a group of economists can effectively predict and therefore maximize the economy, why are none of the richest people in the world economists?

[@Brazbrah]

Is this a joke?

[@Super_Synthesis]

Warren Buffett has a master's in economics.

[@emg7882]

because economists dont invent products or services like Bezzos or musk. Economists understand how the money flows so they work in banks, etc.

[@joecurran2811]

All people who are self-made have a good sense of at least some economics.

[@omarperezrodriguez1827]

Bitcoin is the answer my friends

[@chuckwalker1899]

I assume it’s going to be the same as all currency when it’s widespread, but it would be amazing to study if it were to change the economic layout like the Bank of England did

[@chuckwalker1899]

But also you really got a point because of it’s ability to make economic data much more accurate and predictable