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Perhaps a weaker statement would be "centrally planned interest rates exacerbate the business cycle".
by HPsquared 3y ago
Perhaps a weaker statement would be "centrally planned interest rates exacerbate the business cycle".
- AnimalMuppet 3y agoCentrally managed interest rates moderate the business cycle. It's one of the key activities of a central bank. And it's easy to verify. Look at the business cycle in the US before and after the creation of the Federal Reserve, for example. Under the Fed, we had the Great Depression and 2008, and relatively mild recessions other than that. Compare that with the 19th Century.