Alexander Hamilton’s National Bank?

Question

Alexander Hamilton’s National Bank proved to be the forerunner of today’s Federal Reserve Bank. With interest rates at 40-year lows, the only option remaining to the Federal Reserve Bank to stimulate the economy with is to print money. This however, risks sending the dollar sharply lower and raising the costs of imports and inflation. With America so dependent on imports, is this wise? Or should we just let the business cycle run its course, and quit trying to manage it?

Answer 1

It doesnt risk sending the dollar lower. It does. Other nations could mask the effect by nuking their own currencies as well and joining the race to the bottom, but inflation figures tell the whole story.

You know what they say about boiling a frog, you throw a frog on hot water and it jumps but if you slowly heat the water one degree at the time it gets used to it and dies without a fight. The same goes with fiat money, people are being slowly boiled with inflation, a dollar today would be worth 4 cents in 1900, but thats ok as long as prices dont go up too fast.