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There's this general sentiment that it should be between 1-3%. But it's just a sentiment mostly based on historical experience. But the global economy is consta
by jusben1369 11y ago
There's this general sentiment that it should be between 1-3%. But it's just a sentiment mostly based on historical experience. But the global economy is constantly evolving; China wasn't really even a blip on the radar 15-20 years ago. So whose to say what the right level is except the one that is attempting to balance inflation and employment goals.
- wutbrodo 11y agoThe advantage is much more fundamental. Given the uncertainty that you're describing, removing a constraint on our actions is ceterus paribus a good thing. The same argument could have been made during the Bush years, when rates were kept low "unnecessarily" (according to conventional thinking), and the inability to lower rates after the crash tied our hands unnecessarily.