Federal Reserve Crisis Solution Flow Chart

Last night the Federal Reserve (the US central bank) announced it would continue to print more US dollars in an attempt to ‘stimulate’ the US economy. The reason the US economy is in such a bad state is because of too much money printing, but tell that to the Keynesian economists at the Fed, to whom every economic problem looks like a nail, and the only tool they have is a hammer.

If you don’t understand the central bank playbook and how they respond to crises, it follows below.

h/t Karen de Coster