3 ms·
The natural rate of interest is zero[1]. Anything else causes economic distortion and misallocation. [1] http://www.moslereconomics.com/wp-content/graphs/2009/
by User23 6y ago
The natural rate of interest is zero[1]. Anything else causes economic distortion and misallocation.
[1] http://www.moslereconomics.com/wp-content/graphs/2009/07/natural-rate-is-zero.PDF http://www.moslereconomics.com/wp-content/graphs/2009/07/nat...
- ceejayoz 6y agoThe author of that also thinks the natural speed limit is 30 miles per hour, so take the assertion with a grain of salt. http://moslereconomics.com/2008/05/22/energy-crisis-solution/ http://moslereconomics.com/2008/05/22/energy-crisis-solution... (The claim about interest rates is a bit more complicated than "set it at zero", too. The full claim from the linked article is "the natural, nominal, risk free rate of interest is zero". Most uses of interest in our economy aren't risk free.)
- mrfusion 6y agoI thought the optimum speed was 45 or 50?
- whatshisface 6y agoThe optimum speed can't be higher than 6mph, any faster and I'd ask you to leave my living room.
- thatcat 6y ago~55 mph is the speed where aerodynamic drag starts to exceed mechanical friction, becoming the primary negative force and it exponentially increases at higher speeds.
- newacct583 6y agoDrag increases quadratically with speed.
- mrfusion 6y agoGoing too slow hurts mileage too right? I’m not sure how exactly.
- TylerE 6y agoNo. There is no speed* such that going slower will decrease mileage. * Unless we're talking about some sort of pathological edge case in a vehicle without a properly specced transmission or something, or driving an automatic so slow it's just idling against the torque converter or something.
- mrfusion 6y agoI guess for modern vehicles though you want to be in top gear. Otherwise it’s more revolutions of the engine for a given distance. So the minimum speed to get into top gear.
- TylerE 6y agoRevolutions and fuel consumption don't really correlate. It's not like the engine injects a fixed amount of fuel every cycle.
- Rury 6y agoWhen acceleration isn't happening (i.e travelling at a constant speed under constant load), it largely does correlate.
- TylerE 6y agoIt's not a straight line. Brake Specfic Fuel Consumption (gal/hp-hr) is often higher in the lower 3rd of the rev band. Across the bulk of the RPM range the BFSC curves are basically flat for most engine. Throttle position matters much more than RPM.
- markc 6y agoNo. I checked multiple sources with actual test results. Most cars get peak MPG at over 25 MPH.
- mrfusion 6y agoEven it’s truly risk free, why would someone lend money for free?
- JackFr 6y agoIf you can print it, why would you borrow for more than 0?
- zzzzzzzza 6y agoaccording to henry george, the natural rate of interest is equal to the lowest productivity plot of available land. Which I think is an interesting perspective.