Quote of the Day: Felix Salmon

Liquidity is like a safety net: it allows people to feel free to make potentially stupid decisions, because they know they can always change their mind and reverse those decisions at any point. Until, of course, there’s a crisis, and correlations spike, and the safety net, just when you need it, isn’t there.

— Felix Salmon (Reuters)

Quote of the Day: Felix Salmon

My feeling about an inflation target is that its mere existence is not going to convince anybody that inflation is on the way. So unless and until the Fed can credibly explain how it’s going to create 3% inflation, it shouldn’t even think about unveiling a target. And if it can credibly explain how it’s going to create 3% inflation, then it doesn’t need the target at all.

— Felix Salmon (Reuters)