Robert Samuelson has a really unique take on American politics, which generally holds that all efforts to improve anything are doomed and therefore we should adopt conservative policies for reasons that are never explained. Today, for example, he says that the Fed probably can’t spark growth because if they succeed at sparking growth, we might end up with too much growth:
But if all the cheap money spurs much higher economic growth, many of these reserves will turn into loans and raise the specter of higher inflation — “too much money chasing too few goods.” The Fed would then have to withdraw or neutralize the added money through higher interest rates.
It’s of course true that if we succeed in ending the current disinflationary cycle that then at some future point we’ll face different problems and the Fed will need to change policies. But so what?