Inequality, Interest Rates, Aging, and the Role of Central Banks

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by whimsicalism on Wednesday September 01, 2021 @08:50PM (#28387439)

I guess I disagree with this guy's characterization - unless the point he is making is that the Fed has to operate within the constraints of what makes sense given the market or otherwise the market fails.

This blog post summarizes my opinion https://www.themoneyillusion.com/monetary-policy-and-interes...

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Re:Inequality, Interest Rates, Aging, and the Role of Centra... by chii on Wednesday September 01, 2021 @11:25PM (#28388343)

> Fed has to operate within the constraints of what makes sense

that's an implicit assumption all rational economists would have. It's like saying the US could just be holding the entire world hostage by threatening to nuke the entire world.

The blogpost you linked is basically confirming that the feds don't have unlimited room for controlling interest rates. they can merely nudge it a bit here and there, and hope for the best.

I like the analogy of the bus driver through the Alps.

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