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@ Jordan S
2025-05-17 14:46:30
In all honesty, Fiscal, and Monetary Policy should be doing the opposite of the economy.
When the economy is booming, and growing fiscal policy should be in surplus, and monetary policy should be seeking to reduce money in circulation.
When the economy is receding new money should be introduced, and fiscal policy should run a deficit to stimulate economic activity, and growth.
However, in the current era, as a corrective measure due to the economy being continuely stimulated for the past 20+ years then we should to some degree keep monetary supply relative to the economy, and seek to post continual surpluses, or di a freeze on federal spending at current levels until new private sector economic activity can outpace the federal spending.
I am in the camp of belief that small deficits, or small surpluses are the most optimal policy.
Large debts / deficits are almost exclusively unoptimal overall.