What I Learned In 2020 - John Hempton
The Joe Walker Podcast
00:00
Why Does Quantum Mechanics Work?
If you asked me why does monetary policy work, I don't know. It doesn't look right to me in the same way that why does quantum mechanics work. And so if you actually want monetary policy to induce a little inflation and have some kind of effect rather than just wind up in asset prices be credibly reckless. That's what the model says he should do. What is the difference between America printing $6 trillion and Zimbabwe printing $1 trillion? And the answer is one of them looks credible and one of them looking reckless.
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