The limits of the Fed

How much can the Federal Reserve really boost the economy?

Mainstream economic policymaking rests on a division of labor: The Federal Reserve should worry about managing the macro-economy — balancing job creation against inflation — while Congress should focus on balancing its budgets. But now this way of doing business is coming under assault, thanks to things like Modern Monetary Theory and the left's push for Medicare-for-all and a Green New Deal.

But here's the funny thing: Even if you set aside this big clash of ideas and grant mainstream economics its assumptions, this assignment of roles makes no sense.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.