In the backdrop of the Monetary Policy pursued by some of the
most influential central bank around the world and its probable effect on
spending and growth in the time on the global economy which is more dependent
on the real wages/incomes/profits, Keynes plus Pigou, both, have stressed on
increasing incomes or real incomes to increase demand supply growth during
slowdowns.
Lower money supply would increase interest rates
everywherelse... Stoking inflation and depreciation, except the domestic
economy... Higher rates would make the US uncompetitive and the exchange rate
would soar... A bad trade-off just to increase domestic demand at the cost of
global demand which may again reduce exports and increase imports... Globally
real wages/incomes/profits would go down...
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