Originally posted by HershOstropoler
If you can answer a question for a change: Are you denying that a central bank, by forcing interest rates below their natural market level, can create a self-reinforcing consumption and invest boom ? Yes or no.
If you can answer a question for a change: Are you denying that a central bank, by forcing interest rates below their natural market level, can create a self-reinforcing consumption and invest boom ? Yes or no.
I think that had the fed not followed the interest rate policy they did that the US economy would be in far worse shape than it is. You wanted tighter policy - you agreed above. The output gap is closing so very slowly as it is.....with tighter policy the threat of a very bad recession/Japanese scenario would have been huge.
And your reason for wanting tighter policy is that you say that the fed's 'loose' policy is precisely what makes the recession/japanese scenario more likely, as you said a second ago.
Priceless. Made my day, I thank you.
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