The Four Pillars of Macro with Andy Constan
Excess Returns
00:00
Is the Fed a Participant?
When you take money from savers and hand it to consumers, that tends to be stimulative because consumers instead of saving will go out and spend. When you run a deficit, the same thing applies. And so tracking those sort of things is important. The interesting thing about the post COVID time was that the government funded by the fed buying the bonds didn't have to find a new saver to get money to hand to the economy. They got the fed. And so the money came from the fed and then was handed straight to the economy as an inflationary impulse.
Transcript
Play full episode
