The money multiplier is only .75. That means all of the bogus stuff that's being printed has no long term effect on the economy.
The fix: increase interest rates.
I am not trained in Economics. Correct me where my hypothesis makes no sense, please.
Can't. That would crash the economy practically overnight. We now have so much debt that we can`t even handle the slightest increase without going into recession.
“The fix: increase interest rates.”
I believe the fix isn’t in tweaking monetary policy, but the fix is in removing government from business and peoples lives. No income taxes, no business taxes, no regulations, etc. Then watch the people thrive and their businesses. Watch the economy take off.
My understanding of some of this stuff is shaky at best, but would a multiplier under 1 mean the the multiplier effect is actually working backwards? $1 in yields .75 cents out? If so, were in a negative feedback loop. That can't be good.