low inflation is actually a good thing and asset bubbles are actually a bad thing

Apr 1, 2025

. . . but Fed policy stupidly tries to counter low inflation and stupidly fails to recognize asset bubbles.

https://mishtalk.com/economics/fed-interest-rate-and-qe-policy-mistakes-in-pictures-and-silly-fed-comments/

(“assets” in this context refer to the prices of stocks, bonds, and real estate)

The above article ends by saying: “The risk of debt deflation and an asset price collapse is very real. Trump policies, especially tariffs, compound that risk.”

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Steven Welzer
Steven Welzer

Written by Steven Welzer

A Green Party activist, Steve was an original co-editor of DSA’s “Ecosocialist Review.” He now serves on the Editorial Board of the New Green Horizons webzine.

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