Cal Axe
1 min readSep 10, 2020

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I really liked that last bit! "You could rush to the Robinhood trading apps of the world and treat finance like the casino, investing blindly based on hype and Twitter influencers. (Unfortunately, that usually means the house wins and they take all your money.)"

So true and I'm guilty of it!

I would probably add that's it's not as simple as "printing money." The federal reserve monitors inflation (and in contrasts deflation) through several polices. Just printing money is an oversimplification. The Feds goal is to manipulate interests rates and therefore the flow of new money in the system. You can also do this by placing minimums or limits on the amount of money banks must hold in their reserves.

For example, if you place a higher reserve requirement, then banks have less money to lend and therefore interests rates increase and people are less likely to borrow. Same is true in the opposite direction.

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Cal Axe
Cal Axe

Written by Cal Axe

Practical advice about writing and running | Subscribe https://runwithcalaxe.substack.com

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