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Lots of people who wished the natural interest rate was lower liked to blame the Fed instead of fundamentals. But if the Fed has set the interest rates too low
by JamesBarney 4y ago
Lots of people who wished the natural interest rate was lower liked to blame the Fed instead of fundamentals. But if the Fed has set the interest rates too low we would have had runway inflation from an overheating economy instead of a low prime age employment % (which suggests the interest rates were too high).
- greatpostman 4y agoNo you don’t get it. Risk assets are priced from interest rates. Low interest rates inflated assets, which caused mass wealth inequality and excess wealth made by owners of capital. The picture is way more complex, we have had deflation due to outsourcing and technology. So it’s been impossible to get inflation.