{"id":53955,"date":"2020-04-04T02:00:02","date_gmt":"2020-04-04T06:00:02","guid":{"rendered":"https:\/\/quotulatiousness.ca\/blog\/?p=53955"},"modified":"2020-04-03T08:08:38","modified_gmt":"2020-04-03T12:08:38","slug":"monetary-policy-the-negative-real-shock-dilemma","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2020\/04\/04\/monetary-policy-the-negative-real-shock-dilemma\/","title":{"rendered":"Monetary Policy: The Negative Real Shock Dilemma"},"content":{"rendered":"<p align=\"center\"><iframe loading=\"lazy\" width=\"853\" height=\"480\" src=\"https:\/\/www.youtube.com\/embed\/NgoDvHjDseI\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<blockquote><p><strong>Marginal Revolution University<\/strong><br \/>\nPublished 15 Aug 2017<\/p>\n<p>Imagine a negative real shock, like an oil crisis, just hit the economy. How should the Fed respond? <\/p>\n<p>Decreasing the money supply will help with inflation, but make growth worse. Increasing the money supply will improve growth, but inflation will climb higher. What&#8217;s the Fed to do?!<\/p><\/blockquote>\n<p><a href=\"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma-480x270.png\" alt=\"\" width=\"480\" height=\"270\" class=\"aligncenter size-medium wp-image-56177\" srcset=\"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma-480x270.png 480w, https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma-853x480.png 853w, https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma-150x84.png 150w, https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma-768x432.png 768w, https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2020\/04\/Screenshot_2020-04-04-Monetary-Policy-The-Negative-Real-Shock-Dilemma.png 930w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Marginal Revolution University Published 15 Aug 2017 Imagine a negative real shock, like an oil crisis, just hit the economy. How should the Fed respond? Decreasing the money supply will help with inflation, but make growth worse. Increasing the money supply will improve growth, but inflation will climb higher. What&#8217;s the Fed to do?!<\/p>\n","protected":false},"author":1,"featured_media":35193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,84],"tags":[164,165,1093,563,718],"class_list":["post-53955","post","type-post","status-publish","format-standard","hentry","category-economics","category-government","tag-federalreserve","tag-inflation","tag-macroeconomics","tag-money","tag-recession"],"jetpack_featured_media_url":"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2016\/06\/favicon.png","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-e2f","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/53955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=53955"}],"version-history":[{"count":3,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/53955\/revisions"}],"predecessor-version":[{"id":56178,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/53955\/revisions\/56178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media\/35193"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=53955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=53955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=53955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}