More Stimulus, Please

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Matt Yglesias thinks the Fed needs to do more to stimulate the economy:

I’ve had some correspondents suggest that the Fed really does want to be more accommodating but there’s nothing more they can do. That’s certainly not the way recent statements have sounded to me. On the contrary, it seems to me that Ben Bernanke and co. are just flagrantly ignoring their actual legal mandate to balance considerations of employment, growth, and price stability. If we had five percent unemployment and five percent inflation instead of 10 percent unemployment and no inflation, the Fed would be freaking out. So why not freak out at 10 percent unemployment.

Actually, I’d like an answer to that question.  What should the Fed do at this point?  When inflation is high, the answer is obvious: if it wants to, the Fed can simply keep raising interest rates until inflation is under control.  The sky’s the limit.  But the other direction is harder.  With interest rates already at zero and trillions of dollars of quantitative easing already in place, what’s left to bring down unemployment?  Brad DeLong suggests that the Fed announce a long-term inflation target of 3% instead of 2%, but I haven’t heard a lot of other proposals.

If the answer is even more dramatic quantitative easing, that’s fine.  But is it?  Inquiring non-economists want to know.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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