Danielle DiMartino Booth: A Banking Panic Makes The Fed’s Job More Difficult
Forward Guidance
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What's the Effect of Bank Runs on the Economy?
When money is tight, people save more and they spend less. In a recession, that's fear feeds on itself; in a boom, the sort of desire to consume feeds on itself. Daniel: People texting me, I haven't heard from in years saying, wow, should I cancel this? Should I put that? This is highly deflationary. And we're just going to chill. Let's enjoy it for a little while and chill.
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