More Stimulus, Please

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

Matt Yglesias thinks the Fed needs to do more to stimulate the economy:

I’ve had some correspondents suggest that the Fed really does want to be more accommodating but there’s nothing more they can do. That’s certainly not the way recent statements have sounded to me. On the contrary, it seems to me that Ben Bernanke and co. are just flagrantly ignoring their actual legal mandate to balance considerations of employment, growth, and price stability. If we had five percent unemployment and five percent inflation instead of 10 percent unemployment and no inflation, the Fed would be freaking out. So why not freak out at 10 percent unemployment.

Actually, I’d like an answer to that question.  What should the Fed do at this point?  When inflation is high, the answer is obvious: if it wants to, the Fed can simply keep raising interest rates until inflation is under control.  The sky’s the limit.  But the other direction is harder.  With interest rates already at zero and trillions of dollars of quantitative easing already in place, what’s left to bring down unemployment?  Brad DeLong suggests that the Fed announce a long-term inflation target of 3% instead of 2%, but I haven’t heard a lot of other proposals.

If the answer is even more dramatic quantitative easing, that’s fine.  But is it?  Inquiring non-economists want to know.

THE TRUTH IS...

what drives Mother Jones' team of 50-plus journalists. The truth is powerful, as evidenced by how hard those with something to hide, or profit to gain, seek to discredit it. The truth, stated boldly and reported meticulously, is what draws so many readers to Mother Jones.

And the truth is, going into the final 4 days of the year we still needed to raise $TK to hit our $350,000 goal and start 2021 on track. It's nerve-wracking, wondering if the big spike we normally see at the end of December is going to be another thing that doesn't go as planned in 2020, or worse, if, now that Donald Trump is set to leave the White House (for longer than a taxpayer-funded golf trip to a property he owns), folks might be pulling back from fighting for the truth and a democracy and think the hard work is done.

It's not, and if you can right now, please consider a year-end donation to support our team's fearless nonprofit journalism so we can close that big fundraising gap and finish the year strong, ready for all that's ahead in 2021. Whether you can give $5 or $500, it all matters in keeping us charging hard, and we'd be grateful.

payment methods

THE TRUTH IS...

what drives Mother Jones' team of 50-plus journalists. The truth is powerful, as evidenced by how hard those with something to hide, or profit to gain, seek to discredit it. The truth, stated boldly and reported meticulously, is what draws so many readers to Mother Jones.

And the truth is, going into the final 4 days of the year we still needed to raise $TK to hit our $350,000 goal and start 2021 on track. It's nerve-wracking, wondering if the big spike we normally see at the end of December is going to be another thing that doesn't go as planned in 2020, or worse, if, now that Donald Trump is set to leave the White House (for longer than a taxpayer-funded golf trip to a property he owns), folks might be pulling back from fighting for the truth and a democracy and think the hard work is done.

It's not, and if you can right now, please consider a year-end donation to support our team's fearless nonprofit journalism so we can close that big fundraising gap and finish the year strong, ready for all that's ahead in 2021. Whether you can give $5 or $500, it all matters in keeping us charging hard, and we'd be grateful.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate