Topic: Is the economy supposed to be a political tools? - page 3. (Read 557 times)

Very qualified people(really qualified in their fields) who have the fear of our true CREATOR and detest wrong/immorality are supposed to be in governments, not just in the economic sector. You can't compromise on this else there will be problems.
I feel strongly that this issue of wrong people in the government can be solve with well decentralized system built on the right Blockchain principles and rules.
I nolonger bother myself with the old order, because the normal people who should be standing together to discourage it are busy fighting themselves... They are obviously under heavy bondage.
I think you can make things right with the right decentralized tech and rules/laws.

To the best of my knowledge the federal government does not draw up fiscal policies, they rather approve them when a bill is passed, the central bank of a Nation is responsible for making economic policies which they think would benefit the nation.

You should also note that the sector that makes the policies is different from where actual bills are printed. The idea of 'printing money out of thin air' should not be taken literally as this rarely happens. What the central banks does is they put measures in place to counter the effect of an economic issue;
During a recession, an expansive monetary policy would be passed and this would help to stimulate the economy and increase the cash flow without printing more actual bank notes. This can be done by;
• Making cheaper credits available for banks. This would increase the amounts local banks can borrow from the federal reserves, the bank in turn would make loans readily available for the populace at cheaper interest rates. This is done to stimulate SMEs by injecting more money into the market.
• They can also engage in quantitative easing: were the central banks would buy securities and bonds from member banks, and provide them with credits in those amounts, this increases the liquidity in Banks and increases the flow of money. This was done by the Federal reserve in America during the 2008 financial crisis

These measures are rarely taken proactively and are usually implemented after a recession has already hit, hence the outcomes are not usually very impressive, they are used to set an economy on the path to recovery. It could take several years after it's implementation for the economy to begin to expand.

I still find it hard to wrap my head over the fact that most economist analyst is aware that continuous printing of money is deterrent to the economy and quality of life in the long-run, but still, the government keeps issuing endless bills. It's not my desire to politicize my views but ideally, economists should run most of the economic policies but it seems the economist is only a remote control tool used by the government to achieve political interest.

It seems the world now runs policies for immediate gains while trashing policies that bring future gains. Maybe I am having a distorted view, but looking at most government policies around the world, even a non-economist can tell that this will be disastrous in the future.