3 ms·
Lol, it is objectively the "effect". The feds fund rate has been set to near zero for almost 8 years. This is acts as the baseline cost of credit in our countr
by adam419 10y ago
Lol, it is objectively the "effect".
The feds fund rate has been set to near zero for almost 8 years. This is acts as the baseline cost of credit in our country and given our global financial stature, the world.
- ArkyBeagle 10y agoBear with me - how does that tie back to monetarism ( which, according to my dim lights , we simply don't do ). I presume you mean QE{I,II,II...} ? Those have been zero velocity efforts; buried in the back yards of big banks without a trace. Increased reserves with interest being paid on them.
- adam419 10y agoSee my above reply to dragonwriter. You're right, of MV = PT they have only manipulated the M (Money supply) so far. But unless this destructive dogma and school of thought is put to an end they will begin to institute velocity efforts during the next crash since rates are essentially zero and it's all they'd have left: wealth tax or applied negative interest rate on deposits, helicopter money, etc.
- ArkyBeagle 10y agoAgreed. For lack of a better choice, I tend to line up with Sumner and the Market Monetarists, which is a different flavor of monetarism yet ( and I'd think more in line with trying to get V up ). So the pallitative for monetarism may well be monetarism :)