Too many people certain that interest rate policy is going to destroy demand and lower inflation. Not enough worried that a rapid rise in the cost of capital is going to massively bork the supply side and render demand destruction mute.
Discussion
Moot*
Too many people under 35 think interest rates are high right now. They are not.
The average Fed Funds rate since 1955 is 4.25%.
US economy was able to grow very robustly at about +4% per year pre 9/11 with interest rates of 5-6%.
No parameter is fixed in macroeconomics. When one parameter changes eg rates, it often gives unexpected results because all other parameters are floating too.
Argentina inflation, 100% and interest rates 70%.
Let's not let facts invalidate our theories though. Just keep repeating raise rates and interest drops and it will come true, same as saying Beetlejuice.
Maybe that’ll mean prices will drop:)
Controlling money is like a very long, very boring sim-game.
And only a handful of people got the pre-release.
Bitcoin opt’s you out of having to live thru the livestream.
Federal Reserve is playing the longest, most boring, yet most consequential
Let’s Play livestream ever.
Most Economists are just fanbois.
Prove me Wrong.
We’re about to see high inflation and high interest rates at the same time. Gonna be ugly.