CHEAP MONEY IS OUT OF ORDER no. 2

(the second in a series)

This installation addresses "cheap money," inflation, and the Federal Reserve. (In finance, "cheap money" is a monetary policy where the Federal Reserve sets low-interest rates.)

Again, the work features an old-school gumball machine. But this time, it's filled with $2 bills (replacing $10 from the original sculpture) offered for 25 cents – literally cheap money.

The choice of the two-dollar bill has several meanings:

1. First, the denomination is a nod to one of America's earliest economic policy debates between Jefferson and Hamilton – the founding fathers who adorn the $2 and $10 bills, respectively. Jefferson was opposed to a powerful central bank; Hamilton’s ideas provided the foundation for creating the Federal Reserve a century later.
   

2. Second, the number two represents a level of inflation, which the Federal Reserve has aimed for over the last several decades. Recently, however, inflation has been much higher, which many attribute to the Fed's aggressive policies over the previous year and a half. This has led many to criticize the current Fed and the institution more generally (helping the popularity of assets like Bitcoin).

3. Finally, it represents the Fed’s “dual mandate”: price stability inflation and maximum sustainable employment.

The “out of order” sign raises fundamental questions about the Fed over the last several years both economically and ethically. It also relates to the Fed’s hawkish turn (Jerome Powell’s remark about retiring “transitory”, and tapering), which means it may soon be harder to get cheap cash.

Question

1. Why was the display put up overnight? This references the overnight lending rate on which the Fed has a significant impact.