Warren Bailey Quotes (12 Quotes)

Imagine you stay in cheap hotels where the hot water doesn't work in the shower and you have to fiddle with the knobs to fix it. Sometimes it's too hot, sometimes it's too cold. And imagine you don't stay in the same hotel twice. That's the problem we face with monetary policy. It's crude, it's a fuzzy instrument and it's applied in a different circumstance every time.

It's not that the Fed is trying to break up the party, it's that they're trying to keep it under control so there's enough to go around for everyone. Inflation is a signal that we are running out of some kind of resource.

Each business cycle is different. We can't compare this to some expansion that occurred in 1964. We literally don't have enough data.

Ten or 15 years ago the IMF and the World Bank were out there making little loans here and there, but they weren't out saving the world, ... They've been unfairly criticized of doing a bad job.

When we had the tax cut a while back, people put it in the bank. The Fed can open certain gates, but it can't necessarily force the water to go through.

You want to grow as fast as possible, but when you do that the ups and downs are huge. If the government contracts the economy in advance in a mild way, that makes those ups and downs less onerous, and spares us a lot more pain down the road. That's why they're raising rates.

There are a lot of people struggling, thinking that they need to do this and be involved in the new economy, and they have no idea what they are doing. That's all par for the course, and part of the normal process of any capitalist-driven economy. It's unfortunate, but it's reality -- shake out those that can't from those that can.

There are a lot of reasons why, looking further out, a broadened base for the U.S. dollar would be positive. It would be good for the U.S. because it will make those countries more prosperous, more responsible, more stable. At the same time it does make us more responsible for them, which is a pretty big task to take on.

The good news is, this is a system where you can be caught out and be punished.

We feel like, number one, we are supposed to meet the ordinance,

If people are depressed and scared, as they have been in Japan, there are limits to monetary policy. It comes down to people making personal decisions.

Anything the central bank buys constitutes an asset and allows it to expand its liability of money supply.