Fed says plan to avert inflation next (solution, economy, money)
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Even at larger institutions, "failure does have to be an option in an economic system such as ours," he said, adding that as part of the resolution process, senior management at the failed firms should be replaced.
Summers said there was little choice now but to do everything possible to stimulate economic activity. But he said the Fed must be ready to act decisively in the medium term to restrain spending so that inflation is contained.
Not all that money is flowing in the economy. Much of it went into the banks and stopped there.
In order to take the money out of circulation they need to raise interest rates before hyperinflation kicks in.
The problem though is that the money is not in circulation like they wanted so I don't know how well this will work out.
I am more inclined to believe this than this administration who appear to be in WAY over their heads.
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