tag:blogger.com,1999:blog-4900303239154048192.post5093968130558250236..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Why Is The Fed Raising Interest Rates As Fast As It Is?Unknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4900303239154048192.post-34827644455190398382017-08-28T11:57:22.318-04:002017-08-28T11:57:22.318-04:00I wish they would provide some rigorous proof that...I wish they would provide some rigorous proof that lowering interest rates actually stimulates either investment or consumption. When I took Econ 101, in 1959, my teacher said they learned in the 1930s that "pushing on a string" was not helpful in combating the Depression. The economists who maintain the idea seem to be assuming it, just like a can opener.Procopiushttps://www.blogger.com/profile/17554355440319405363noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-43833790337246212832017-08-20T21:27:39.753-04:002017-08-20T21:27:39.753-04:00An other or simultanious possibility, is that real...An other or simultanious possibility, is that real fed funds interest, discounted for inflation, have been negative.<br /><br />RI=(1+i)/(1+inflation rate)-1 <br />Where, terms are in fraction, not %. Ie 10% would be 0.10.<br />Where RI is "real interest rate" and i is interest rate.<br /><br />Approximated by RI~=i-inflation rate, for rates under 15%.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-19465964849566884952017-08-19T15:28:06.306-04:002017-08-19T15:28:06.306-04:00Getting interest rates back up to a point where lo...Getting interest rates back up to a point where lowering them again would be stimulative---by Occam's Razor, I think you nailed it!<br /><br />Tinhttps://www.blogger.com/profile/17469298813605483869noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-14357515645327429242017-08-18T12:22:42.342-04:002017-08-18T12:22:42.342-04:00It was not so very long ago that most pundits were...It was not so very long ago that most pundits were calling for the FED to rapidly increase the FED funds rate out of concern for the twin evils of: 1) runaway inflation, and 2) Oldsters who were not earning enough interest on their savings accounts! It turns out the latter was just a marketing ploy as the vast majority of Americans have little or no savings and, surprise, surprise, the much feared inflation never materialized. Fast forward a couple of years, and we are now objecting to the FED raising interest rates for fear of....... I guess the answer would be, an end to the current economic expansion. As for the comments about Larry Summers, they seem a little mean. Mr. Summers is hardly the only person who would like to serve as Fed chair, although God only knows why anyone would want the abuse and second guessing that goes along with the job. Mr. Summers has his point of view and time will tell whether or not he was right.Scott Bhttps://www.blogger.com/profile/03956910779812967635noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-72447501165925367742017-08-18T09:48:23.340-04:002017-08-18T09:48:23.340-04:00The money stock can never be managed by any attemp...The money stock can never be managed by any attempt to control the cost of credit. Interest is the price of loan-funds. The price of money is the reciprocal of the price level.Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.com