So, then everyone should agree that the Fed changing its reserve rate requirements on commercial banks doesn't really have much effect on the inflation rate, true? Numerous articles, such as this one claim that the reserve requirement is one of the tools the Fed has to control inflation: https://www.thebalance.com/what-is-being-done-to-control-inflation-3306095
insanity!! the govt can change the tax rate to get whatever revenue it wants so they don't get cheated.
Friedman was not for a free market for money because it would interfere with the free market for everything else
I asked you whether you think the reserve rate is tool the Fed has that actually works to control inflation, yes or no? You're answer was basically "a little bit". Very ambiguous and not really an answer. Obviously that's avoiding the issue of this thread.
I was simply saying that if the Fed prints more money for them to spend it, it ends up taking more money (actually purchasing power, to be exact) away from the government treasury.
The "Fed" isn't the U.S. Treasury or the federal government though. Look, here's what I'm saying. If the Fed wants to try changing the interest rates in the economy through open market operations, and essentially pay for that in the form of inflation, that's less money for the government to spend on other things. And this is a lot of money we're talking about. Once people realize this, that's going to change their outlook on a whole lot of things. I doubt the Left will be so happy about the Fed trying to rescue the economy anymore.
Is it possible you're interpreting his statement too literally? A lot of generalized statements are made in economics, because it's so complicated. Simply impractical to communicate without those types of generalizations. And that seems to be your problem in this thread, you get too hung up on literal interpretations of statements without thinking about them in the wider context of the discussion.
And so now, do you care to give an explanation for why my argument was wrong in the OP? Are you even able to make the connection between the issue of whether fractional reserve banking causes inflation and the issue of whether the reserve rate can be used to control inflation?
you don't want a free market in money and banking, despite your claims of being a free market advocate.
The idea of anyone wanting a "free market" (code for rent seeking corruption) in money and banking is particularly amusing!
There's no such beast. Right wingers using it, particularly for money and banking, are celebrating rent seeking behaviour. But that's the sad reality of these sheep. They whine 'tax is theft' (as dictated by the group think sites funded by the rich) and then demand deregulation which would harm the many to the benefit of the few.
There can't be rent-seeking without state intervention. It's amazing how many "economists" argue in favor of restricting peaceful trade.
Sen refers to 'rational idiots'. I wonder, for the rich funding right wing libertarian sites, if they have a more insidious free market variation?
haha, an "economist" who wants the law to interfere with people's economic decisions. classis commie.