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19-07-2022, 01:40 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
Taming inflation is like trying to slow down a speeding car on a gentle slope. It takes a combination of forcefulness and calibration.
If you do not depress the brakes early enough or hard enough, you cannot break the speed momentum – likewise, monetary policy needs to act early and decisively.
But if you jam the brakes too hard, the car may skid or even topple over – the economy may go into a recession.
So you have to pump the brakes progressively, to gradually slow down the car to a...
Read more (https://www.sammyboy.com/threads/ravi-menon-taming-inflation-is-like-trying-to-slow-down-a-speeding-car-on-a-gentle-slope-it-takes-a-combination-of-forcefulness-calibration.325333/)
Click here to view the whole thread at www.sammyboy.com (https://www.sammyboy.com/threads/ravi-menon-taming-inflation-is-like-trying-to-slow-down-a-speeding-car-on-a-gentle-slope-it-takes-a-combination-of-forcefulness-calibration.325333/).
Taming inflation is like trying to slow down a speeding car on a gentle slope. It takes a combination of forcefulness and calibration.
If you do not depress the brakes early enough or hard enough, you cannot break the speed momentum – likewise, monetary policy needs to act early and decisively.
But if you jam the brakes too hard, the car may skid or even topple over – the economy may go into a recession.
So you have to pump the brakes progressively, to gradually slow down the car to a...
Read more (https://www.sammyboy.com/threads/ravi-menon-taming-inflation-is-like-trying-to-slow-down-a-speeding-car-on-a-gentle-slope-it-takes-a-combination-of-forcefulness-calibration.325333/)
Click here to view the whole thread at www.sammyboy.com (https://www.sammyboy.com/threads/ravi-menon-taming-inflation-is-like-trying-to-slow-down-a-speeding-car-on-a-gentle-slope-it-takes-a-combination-of-forcefulness-calibration.325333/).