and to achieve ze price stabilite they must make people jobless
? I don't understand don't the Fed set interest rates? If that's your target just make them 2% what are we doing here.
Fed in theory only control one aspect of interest rate, which is the federal fund rate. The federal funds rate is the interest rate that banks charge each other to borrow or lend excess reserves overnight - this sets the baseline for consumer-financial institution interest rate. High interest rate will increase unemployment, as business are not able to take loan (and risks). High unemployment will then in theory reduce inflation, because when everyone is jobless and poor then the value of goods will also come down. This is why inflation is not a good metric to gauge anything, and the whole system is ass. Metrics like for example general mental health of the population, satisfaction with how things are going, upward economic mobility, and levels of education in children should take precedent over inflation numbers, GDP, and fake unemployment numbers.
Isn't the federal fund rate what they're talking about though
I don't know, I thought they are talking about inflation as (usually) defined by CPI (consumer price index), e.g., straight up price of different grocery and everyday household products weighted into a composite index
You know I realized I just read it wrong I thought they said the interest rate target is 2%
This is the prevailing logic but it should also be mentioned that only a relatively small fraction of the least few years' inflation is attributable to consumer spending, wages, and employment. A large share is due to what is basically price fixing among the large monopolies, taking profits together rather than undercutting one another. Liberals call it price gouging but this is something that doesn't happen very much under non-monopsony economic conditions. All it takes is one undercutting company to ruin the scheme, after all. Capitalism inherently produces monopsony, of course.
Its literally as easy as stop printing money.
But inflation is made up so ...
IDK my increasing grocery bill doesn't feel very made up
the prices that contribute to it are!
the_dunk_tank
It's the dunk tank.
This is where you come to post big-brained hot takes by chuds, libs, or even fellow leftists, and tear them to itty-bitty pieces with precision dunkstrikes.
Rule 1: All posts must include links to the subject matter, and no identifying information should be redacted.
Rule 2: If your source is a reactionary website, please use archive.is instead of linking directly.
Rule 3: No sectarianism.
Rule 4: TERF/SWERFs Not Welcome
Rule 5: No ableism of any kind (that includes stuff like libt*rd)
Rule 6: Do not post fellow hexbears.
Rule 7: Do not individually target other instances' admins or moderators.
Rule 8: The subject of a post cannot be low hanging fruit, that is comments/posts made by a private person that have low amount of upvotes/likes/views. Comments/Posts made on other instances that are accessible from hexbear are an exception to this. Posts that do not meet this requirement can be posted to [email protected]
Rule 9: if you post ironic rage bait im going to make a personal visit to your house to make sure you never make this mistake again