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It would be interesting to analyze central bank interest rate vs inflation and test for R2 r-squared errors. http://www.zerohedge.com/news/2016-07-05/central-b
by acd 10y ago
It would be interesting to analyze central bank interest rate vs inflation and test for R2 r-squared errors.
http://www.zerohedge.com/news/2016-07-05/central-bank-death-cross http://www.zerohedge.com/news/2016-07-05/central-bank-death-...
https://www.imf.org/external/np/pp/eng/2013/041813a.pdf https://www.imf.org/external/np/pp/eng/2013/041813a.pdf
There might be diminishing return for every new credit money created which in turn leads to lower growth.
It is also not certain that low interest rates will lead to inflation. If you were a big company and suddenly got a lot of cheap credit. Would you A) increase the wages of your workers or B) invest in cheaper production through automation? What does choice A) or B) yield for consumer prices, do they go up or down?
- jganetsk 10y agoYou would do neither. Instead, you would do C) borrow to buyback stock. http://www.wsj.com/articles/share-buybacks-the-bill-is-coming-due-1456685173 http://www.wsj.com/articles/share-buybacks-the-bill-is-comin...