Too many people certain that interest rate policy is going to destroy demand and lower inflation. Not enough worried that a rapid rise in the cost of capital is going to massively bork the supply side...
Too many people under 35 think interest rates are high right now. They are not.
The average Fed Funds rate since 1955 is 4.25%.
US economy was able to grow very robustly at about +4% per year pre 9/11 with interest rates of 5-6%.
No parameter is fixed in macroeconomics. When one parameter changes eg rates, it often gives unexpected results because all other parameters are floating too.
The average Fed Funds rate since 1955 is 4.25%.
US economy was able to grow very robustly at about +4% per year pre 9/11 with interest rates of 5-6%.
No parameter is fixed in macroeconomics. When one parameter changes eg rates, it often gives unexpected results because all other parameters are floating too.