Fed
I keep reading that the federal reserve won’t let us slip into a depression. They point to the “aggressive” cuts in interest rates, etc. You can’t use monetary policy to stave off a depression. If you could, we wouldn’t have slipped into the Great Depression. The Federal Reserve existed back then. It served the same purpose. There have been no major innovations in monetary policy since then. The whole idea that the fed can stop a depression short of giving away money for free is just ridiculous. It’s almost magical thinking.
