[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


View post   

File: 1.24 MB, 1188x1026, Screen Shot 2023-04-01 at 14.22.22.png [View same] [iqdb] [saucenao] [google]
54422066 No.54422066 [Reply] [Original]

Why can't central banks kill inflation?

>> No.54422079

Why can't Christcucks get rid of feminism like Muslims in Afghanistan did?

>> No.54422104

>>54422079
amerilard influence

>> No.54422111

>>54422066
inflation is a feature, not a defect. like when the covid vaccine kills you.

>> No.54422121

>>54422104
You say this when the Rothschilds are entirely from and in Europe
You just don't want to admit you're the cause of all woke shit

>> No.54422124

>>54422066
>aggressively reach quotas for white collar jobs
why isn't anyone looking for diversity on oil rigs and trash pickup?

>> No.54422128

>>54422121
pretty sure jews are middle-eastern, which makes them asian.

>> No.54422134

>>54422121
>the Rothschilds are entirely from and in Europe
>from
oh yea, nappy hair, pale skin and heart disease is totally from indo aryans, slavics and celts

>> No.54422138

>>54422124
>he thinks they aren’t looking for diversity on oil rigs and trash pick-up
just because they can’t find it doesn’t mean they aren’t looking

>> No.54422144
File: 182 KB, 211x191, 1678884058838084.gif [View same] [iqdb] [saucenao] [google]
54422144

>>54422066

It's almost like central banks don't have as much power as you think they do...

>> No.54422194

>>54422079
It's not the feminism, it's that they are not as capable, in general. Evolution has made men smarter, have more common sense. Forcing them into unnatural positions will get the results you expect.

>> No.54422219

>>54422066
Because defeating inflation means trying to cut spending.

>> No.54422222

>>54422134
>The history of the Jews in Germany goes back at least to the year 321
You're all mutts like all the shit you mentioned so it adds up
https://en.wikipedia.org/wiki/History_of_the_Jews_in_Germany

>> No.54422279

>>54422066
They can, they just don't want to.

>> No.54422283

>>54422066
Inflation can be thought of as a function of currency supply X velocity = inflation.

Assume we start with a supply of 1 and velocity of 1. 1x1=1.

If supply or velocity increase and the other stays constant, then inflation goes up: 2x1=2 or 1x2=2.

If supply increases but velocity decreases, then there may be some inflation, no inflation, or even deflation depending on the relative change: 2x1=2, 2x0.5=1, 2x0.25=0.5.

The problem is that central banks don't actually have perfect control over supply or velocity. If banks want to reduce inflation, they could try to decrease supply. They can influence supply by buying or selling assets (buying increases currency supply, selling decreases currency supply), but there needs to be a willing participant on the other side of the trade. Central banks usually can buy without any problems because they can always offer a better price than the rest of the market. When it comes to selling however, they might be trying to sell things that no one wants to buy at any price: bad debts or defaulted mortgages for example that have zero real value. So problem one: it's easier for a bank to add currency supply than remove currency supply.

Central banks can try to influence velocity by changing interest rates. When interest rates are high, velocity might decrease, because people are less likely to borrow money (and pay interest) and more likely to save money (and collect interest). The problem here is that velocity isn't just interest rates, it's also subjective need, value, and future expectations. If inflation is 10% and interest rates are 9%, people still might want to borrow money even if they didn't want to borrow back when inflation was 0% and interest was 2%. People might want to buy goods now that they believe won't be available in a year due to scarcity. Some things people will always buy regardless of price (food). So problem two: central banks can only influence one factor for velocity, but not all of them.

>> No.54422284

>>54422144
This lmao.
As shit as this situation is all around, I always do enjoy finance getting shown up by that pesky thing called reality. You can’t print bread and oil.

>> No.54422359

>>54422134
>pale skin
anon....

>> No.54422367

>>54422283
That’s assuming they want to control inflation instead of a series of bubbles and crashes to consolidate assets.

>> No.54422391

>>54422111
Trips of truth.

>> No.54422415

>>54422066
>Why can't central banks kill inflation?

It wont end until the war in Ukraine does. The Central Bank cannot direct cause that.

>> No.54422906

>>54422079
Are you implying the West is Christian? it's not.