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6 Comments
Kruposays...Lowering interest rates destroys people?
It's the real, not nominal, interest rate that affects how much your savings are earning - which should, hopefully, be the risk-free rate of return.
There's more thought that needs to go into this, but it's late and I'm tired.
FishBulbsays...I'm no economist, but increasing the interest rate controls inflation. Lowering it when inflation poses a possible problem leaves you open to inflation getting out of control.
Kruposays...You're talking about the nominal interest rate. The real interest rate is the difference between inflation and the nominal interest rate.
In theory there shouldn't be a big disconnect between the two... I'm just wondering if Ron Paul went as far as this page, though? http://en.wikipedia.org/wiki/Inflation
Maybe he's a Monetarist, though...
siftbotsays...Tags for this video have been changed from 'inflation, ron, paul, bernake, fed' to 'inflation, ron paul, bernake, fed' - edited by Grimm
oritteroposays...*dead
siftbotsays...This video has been declared non-functional; embed code must be fixed within 2 days or it will be sent to the dead pool - declared dead by oritteropo.
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