>> I think what you're describing is exactly what's claimed. /Lowering/ interest rates leads to growth, not low interest rates. I don't think many economists wo

>> I think what you're describing is exactly what's claimed. /Lowering/ interest rates leads to growth, not low interest rates. I don't think many economists would dispute that. No, they treat is as if the steady state economy will be larger at a given lower rate. For example GDP = X+Y+Z + K/rate. What I'm saying is that GDP = X+Y+Z + K/rate' which is not sustainable at all and means existing policy is not at all the right way to handle it. Actually there may be some degree of truth and both terms should be present in the equation, but nobody talks or acts like the derivative term exists.