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I agree with your first point. Most people don't follow the markets so I thought it might be interesting to them. As to your second point, we will have to agr
by chollida1 11y ago
I agree with your first point. Most people don't follow the markets so I thought it might be interesting to them.
As to your second point, we will have to agree to disagree. You might be right, I'm not a macro economist, but your opinion is a minority one and its definitely not the mainstream opinion.
Which is fine, it might be right, but I'd rather have the fed have room to cut rates than not have that option on the table.
- jbooth 11y agoWorth noting that the mainstream macroeconomic wisdom has been completely disconnected from what we've observed in reality the past 10 years or so -- having rates this low for this long is supposed to spur demand and create inflation, according to mainstream macro, right?
- auntienomen 11y agoGiven high demand, yes. But demand hasn't been high.
- lintiness 11y agolow rates have spurred demand and inflation RELATIVE to where they would have been at much higher rates.
- shawn-furyan 11y agoI think mainstream macro acknowledges that negative rates can be needed to spur demand even though there isn't a good mechanism for achieving negative rates. The zero bound is pretty much a 'natural' restriction that doesn't have anything to do with just how much people want to hang on to their capital in times of uncertainty.