Monetary Policy. *Huh?* *Whut?*
*From the world of Economics - Monetary Policy*
What on earth am I talking about?
The thing is, Macroeconomics is most definitely counter-intuitive. Micro-economics makes intuitive sense - supply/demand, cost/benefit, etc ar things we know at an almost primeval level. But macro, well, not so much. (for those keeping track, this is not unlike Classical vs. Quantum physics).
This is also the reason why you hear absolute drivel like "The federal budget is just like a family budget, and we in government must tighten our belts and live within our means just like families do." , the correct response is to do a spit-take, and then throw something at the utterer, preferably something hard-enough to knock some serious sense into the brain-dead doofus issuing said goofosity.
Anyhow, when you hear Very Serious People discussing National Economic Issues, you'll hear stuff like Fiscal Policy , Monetary Policy , and so on. What are these things? Fiscal Policy is for another day, but Nick Rowe has a wonderful article describing Monetary Policy (and for the irretrievably unable to click on links - this is about why - sometimes - printing more money is a Good Thing.
What on earth am I talking about?
The thing is, Macroeconomics is most definitely counter-intuitive. Micro-economics makes intuitive sense - supply/demand, cost/benefit, etc ar things we know at an almost primeval level. But macro, well, not so much. (for those keeping track, this is not unlike Classical vs. Quantum physics).
This is also the reason why you hear absolute drivel like "The federal budget is just like a family budget, and we in government must tighten our belts and live within our means just like families do." , the correct response is to do a spit-take, and then throw something at the utterer, preferably something hard-enough to knock some serious sense into the brain-dead doofus issuing said goofosity.
Anyhow, when you hear Very Serious People discussing National Economic Issues, you'll hear stuff like Fiscal Policy , Monetary Policy , and so on. What are these things? Fiscal Policy is for another day, but Nick Rowe has a wonderful article describing Monetary Policy (and for the irretrievably unable to click on links - this is about why - sometimes - printing more money is a Good Thing.
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