"In actuality, the Fed
has little control or influence over the things that really matter in the real
economy."
"Here’s what the Fed cannot do:
1. It cannot force any enterprise or person to borrow
more money.
2. It cannot differentiate between productive investments and financial speculation/malinvestments.
3. It cannot distribute money to households by dropping cash from helicopters; all it can do is make money available to banks.
Since it can’t do any of these, its powers in the real economy are severely limited."
2. It cannot differentiate between productive investments and financial speculation/malinvestments.
3. It cannot distribute money to households by dropping cash from helicopters; all it can do is make money available to banks.
Since it can’t do any of these, its powers in the real economy are severely limited."
