Posted on 12/24/2017 3:41:06 PM PST by mywholebodyisaweapon
That is a good point. Dodd-Frank and natural caution after the 2008 panic have led to considerable deleveraging of the US economy. With long-term credit and borrowing now unnaturally constrained, it seems that short term rates must tend to experience unusual upward pressure as the economy starts to grow.
Correlation is not causation. There HAVE been times when the fed cranked up short term rates so much they helped cause a recession (think Volker) But thatis light years different than our current low interest rate, long and weak recovery situation.
fixed
Most Keynesian economists have absolutely no clue.
I enjoy my conversations with my PHD friend who is a retired college professor in/of economics. Proof positive you can earn a living as a Keynesian economist. His solution to many ideas is more spending, or different ways of spending. I don’t know if he really, really believes, but he doesn’t back down, and he is still a respected individual in the academic community.
How close am I to being an economist? My father had a Bachelors Degree in economics, I have slept at a Holiday Inn, I am able to recognize a government up to it’s ears in debt. The deficit is another story ripe for fixin, but spending more than you have coming in is part of that problem.
Wishing you all much happiness and prosperity in 2018. Thank you for getting me through the previous 8 year nightmare!!!
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