What does” take away the punch bowl just as the party gets going” mean in Macroeconomic terms?
“Punch bowl”, in macroeconomic terms, is the amount of money in the money supply that is available to an economy. The overall quote is a macroeconomic reference to the practice of monetarism. The Federal Reserve is responsible for removing money from the money supply, which has the consequence of reducing the available money needed for companies (through supply) and individuals (through their capacity for obtaining loans). This is “taking away the punch bowl”. “The party” is the companies’ and individual’s expectations for growth. When a company has to face the news that there is less money in the market for capital growth, they feel the impact of disappointment, just like when a party’s natural euphoria is unexpectantly halted. It’s a good quote. Hope I was of help.
