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> interest rates are a function of expected growth Again, you're saying that as if it's a matter of fact. When I looked into the relationship between growth an
by soVeryTired 7y ago
> interest rates are a function of expected growth
Again, you're saying that as if it's a matter of fact. When I looked into the relationship between growth and interest rates, I found baffling discussions of demand for money as it relates to a financial system completely unlike the one we use today.
I just find it impossible to separate the nonsense from the useful insight. At some point I just gave up.
- hogFeast 7y agoIt is a matter of fact because interest rates are determined by the Fed...who say: we look at expected growth. Don't make things more difficult than they need to be (you can also see this quantitatively).
- soVeryTired 7y agoShort rates are determined by the Fed. And they target inflation, not growth. The Fed has relatively little control of the yield curve at long maturities.