Mr. Jobe's AP American Govt. Class
so does this mean that when the Federal Reserve buys bonds it causes inflation? I know that inflation helps the gov't pay off our debt, but is that really the best way to approach our debt problem?
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It might cause inflation if the economy begins to recover. Many think this is a bad idea since the Fed has already tried this policy.
okay so is it a bad idea? Because I don't see the complete logic behind all of it. Will it help, do nothing, or hurt the economy??
so does this mean that when the Federal Reserve buys bonds it causes inflation? I know that inflation helps the gov't pay off our debt, but is that really the best way to approach our debt problem?
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteIt might cause inflation if the economy begins to recover. Many think this is a bad idea since the Fed has already tried this policy.
ReplyDeleteokay so is it a bad idea? Because I don't see the complete logic behind all of it. Will it help, do nothing, or hurt the economy??
ReplyDelete