|
Current interest rate policy is also resulting in low to non-existent inflation, which (relatively) enriches net creditors at the expense of net debtors. It also makes it viable for individuals and companies to keep their holdings in cash-like instruments, whereas a moderate level of inflation would force them to seek productive investments or see their real wealth diminish. High and/or unpredictable inflation is bad for growth, but that's not necessarily true of steady, moderate inflation. I would argue there's a case to be made for interest rate policy that results in consistent 3-4% inflation as a better scenario for anyone without existing substantial wealth. AreWeDrunkYet fucked around with this message at 17:55 on Jul 28, 2015 |
#
¿
Jul 28, 2015 17:16
|
|
|
|
| # ¿ Apr 29, 2024 09:50 |
|
|
Badger of Basra posted:Low interest rates don't lead to low inflation though (under normal conditions). Raising them definitely won't increase inflation. Short of negative interest rates, there's not much the Fed can do. We need aggressive fiscal, not monetary, policy at this point. e: My original post was more of a preemptive response to the inevitable hand-wringing from Very Serious People about inflation concerns since the Fed is set to consider raising rates in the near future. AreWeDrunkYet fucked around with this message at 19:39 on Jul 28, 2015 |
|
#
¿
Jul 28, 2015 19:23
|
|