Notable because it’s the Wall Street Journal saying this, not some left-of-center publication.
This post uses a gift link which turns into a non-gift link after 300 clicks. When it runs out, there is an archived copy of the article
Notable because it’s the Wall Street Journal saying this, not some left-of-center publication.
This post uses a gift link which turns into a non-gift link after 300 clicks. When it runs out, there is an archived copy of the article
The only way to meaningfully control inflation is via taxation. Changing interest rate doesn’t solve the real problem: there is just too much fucking money being printed.
There is exponentially more wealth in the system than there is currency printed to back it. That is not where the value of our economy comes from. Trade produces wealth, whether from labor or production. Currency just makes trade simpler.
Interest rates do indeed control inflation because high rates put people out of work. Its been done before.
See the massive tech layoffs over the past few years. Debt got too expensive.
That involved both interest rates and tax policy via changes to the R&D credit, so perhaps not an ideal example
In theory, yes. But the cheap interest is being used disproportionately by the rich, not for reinvestment, but for stock buybacks, high compensation, stock leveraged loans, and private equities to flip companies.
Not just in theory; we’ve seen interest rates used exactly that way several times.