I think things changed a lot since the Federal Reserve system was created. Economist gradually learned what worked to control inflation and what made the problems worse, FDIC bank inspections ...etc. Hopefully we will never go back to widespread price controls. Paul Volker changed things a lot by using interest rates to control inflation/ the economy. and later the Fed took on responsibility for maintain full employment, as best it can, along with its inflation mandate. We now have quantitative easing. So much has changed, I think most historical comparisons of data from pre-1980 to more modern data is pretty much useless. Not entirely, but mostly. Larry Swedroe used to post here how changes to tax laws, accounting rules and ???? affect PE 10 data when trying to compare PE10 today to 1-2 decades earlier.
The Federal Reserve and the Treasury department developed because economist learned more and we needed tools to direct our economy in the direction that serves us and a fairly free market best. The Treasury markets are a part of that. Unfortunately we do not have a Department of Finance.
So, thanks for the post.
The Federal Reserve and the Treasury department developed because economist learned more and we needed tools to direct our economy in the direction that serves us and a fairly free market best. The Treasury markets are a part of that. Unfortunately we do not have a Department of Finance.
So, thanks for the post.
Statistics: Posted by jimkinny — Sat Aug 03, 2024 10:51 am — Replies 5 — Views 760