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> Interest rates should be above eight or 9% right now and it’s not. Where do people get ideas like this from? It just seems so completely disconnected from a
by nl 4y ago
> Interest rates should be above eight or 9% right now and it’s not.
Where do people get ideas like this from?
It just seems so completely disconnected from any kind of conventional economic policy that it is hard to understand why someone would say it.
- FollowingTheDao 4y agoI don’t know about anyone else but I have a degree in economics. https://en.m.wikipedia.org/wiki/Taylor_rule#The_Taylor_principle https://en.m.wikipedia.org/wiki/Taylor_rule#The_Taylor_princ...
- xxpor 4y agoIf the fed did that, we'd be in a complete collapse. Worse than the depression. That's infinitely worse than 8% inflation.
- UncleEntity 4y agoVolcker drastically raised rates and we’re still here. I believe my parents had a 17% interest rate on their mortgage back then.
- nl 4y agoI lived though that. It was not pleasant. Long-term, high levels of unemployment are a nightmare.
- FollowingTheDao 4y agoI take it you weren’t alive in the 1980s? I wonder if you actually think there’s a way out of the mess that’s been created over the last 14 years?
- xxpor 4y ago>I take it you weren’t alive in the 1980s? Depends on which side of the life begins at conception/birth debate you're on ;) I took your suggestion as suggesting the fed should bump the rate up to nearly 10% in one go, with no warning, which isn't what they did back then. I also think the artificially induced recession wasn't even necessary. It's more likely that Regulation Q reform is what actually ended that inflationary period.