So Much Trouble For So Little Positive Yield at Fed

Before even getting to the details, it begs the question, why go to all this trouble? So much effort for so little yield, figuratively and literally. For policymakers at the Fed, their job really should be simple, robotic, even. Supply enough money to the economy, then let the economy sort out the details.

But it’s the total lack of details about money which causes what is, in effect, a Rube Goldberg-esque mechanism for interpretation. Rather than go straight to the root, policymakers are forced to come at it backwards with predictable results.