Always, always the interest rate fallacy. Like last week my examination of Economics tardily discovering interesting and key facts on collateral in the world’s primary monetary arrangements, there’s some (very slight) movement in the direction of solving the related “puzzle” over persistently low rates. These are textbook stimulus yet the world hasn’t reacted to them at all in the way predicted.
This has been a long-sought problem, an unforced error in the forced transition from money-based understanding to expectations-based manipulation central banks had begun by default half a century ago.
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