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When you have a central bank that can control rates, no alternative money, and the bank can set rates negative, the equilibrium is for the government to own alm
by landivar2 7y ago
When you have a central bank that can control rates, no alternative money, and the bank can set rates negative, the equilibrium is for the government to own almost all assets. I'm not kidding. You will end up with communism, only via government regulation of rates, unless something breaks this up.
- kthejoker2 7y agoIf our capital markets are so unproductive that having the government own the assets is considered a net economic gain, we'll need all the communism we can get. The central bank does not "control" rates, they respond to the market signaling where rates should be.