Milton Friedman’s interest rate fallacy is one of the most mystifying and counterintuitive facts in modern finance. Modern economists and financial analysts often assume (and operate under the assumption) that central bankers have near complete control over interest rates, especially in the era of trigger-happy central bank officials who are all too excited to initiate asset purchases at the first sign of financial instability. The average economist and financial market participant automatically associate high interest rates with tight monetary policies and therefore tight monetary conditions in the economy,
Great article. I would wonder how much of the small biz bank debt is handled by private credit funds now. It may easily fill up the missing gap since 08 (the banks are so much more regulated in biz loans now).
Thanks!
Very interesting - what's your take on credit issue affecting inflation? caw of giageld.com
Great article. I would wonder how much of the small biz bank debt is handled by private credit funds now. It may easily fill up the missing gap since 08 (the banks are so much more regulated in biz loans now).