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A comment on Fed Ends Zero-Rate Era. Parent comment

Re:Fed Ends Zero-Rate Era by jbooth on Wednesday December 16, 2015 @03:20PM (#10746998)
Worth noting that the mainstream macroeconomic wisdom has been completely disconnected from what we've observed in reality the past 10 years or so -- having rates this low for this long is supposed to spur demand and create inflation, according to mainstream macro, right?
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Re:Fed Ends Zero-Rate Era by shawn-furyan on Wednesday December 16, 2015 @05:19PM (#10747801)
I think mainstream macro acknowledges that negative rates can be needed to spur demand even though there isn't a good mechanism for achieving negative rates. The zero bound is pretty much a 'natural' restriction that doesn't have anything to do with just how much people want to hang on to their capital in times of uncertainty.
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Re:Fed Ends Zero-Rate Era by lintiness on Wednesday December 16, 2015 @03:47PM (#10747200)
low rates have spurred demand and inflation RELATIVE to where they would have been at much higher rates.
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Re:Fed Ends Zero-Rate Era by auntienomen on Wednesday December 16, 2015 @03:26PM (#10747048)
Given high demand, yes. But demand hasn't been high.
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