/biz/ - Business & Finance

>>15654807
The problem isn't the interest rate, sure you could jack it up overnight and cause a major recession and mass unemployment but no one wants that. The problem simply is you can't use monetary policy to get money to flow towards producing things and increasing socially desirable consumption. If you can get a bigger return speculating on intangible assets that's where the smart moneys going to flow. If you want real growth you got to disincentive that and make it more profitable to make real long term investments.

>>15654922
based retarded lolbert logic, let me guess you want the government to hold supply against a physical commodity like gold and even criminalise private currencies (become will use cheap money if they have the choice) to "fight inflation"?

>>15655321
http://moslereconomics-kg5winhhtut.stackpathdns.com/wp-content/uploads/2018/04/The-Natural-Rate-of-Interest-is-Zero.pdf

>>15655332
>central banking was always a failure , the worse mistake in the history of mankind
Totally wrong. Double entry-book keeping and fractional reserve banking are the two biggest innovations humans probably came up with. The "gold standard" was the real disaster politically imposed by conservative bankers on states. Nations just need to fully realize they don't need to borrow from anyone and budget constraints can only be a result of real economic factors. No one needs to buy your stupid fucking rocks to finance anything.

>>1622074
This ain't gonna happen, unless they really believe Trump is going to impose tariffs and tank the global economy.

>>1623789
Other countries have a much lower cost of living and will always be more competitive when it comes to anything having to employ large amounts of unskilled labour.
You had an artificial overinvestment in the manufacturing sector coming out of WWII because the government pretty much took over the economy during the war and maximized manufacturing investments while controlling price and wage levels.

>>1132825
low-unemployment = high-prices is monetarist orthodoxy so to fight inflation you need to generate unemployment.
Alan Greenspan himself said in front of congress in 1997 that the exceptional performance of the 90s was due to "a heightened sense of job insecurity" among workers "and, as a consequence, subdued wages."

http://prospect.org/article/republic-central-banker

>>1132834
All that "free money" doesn't go into real productive investments creating employment for workers but into inflating asset values and transforming the economy into a pre-industrial usury-and-rent economy.

>>1120712
Putting money into a FIRE economy will most likely just result in asset inflation, that'll benefit some people but you're not getting real wealth creation.

Financialized economies are horrible at actual physical capital formation or creating real meaningful jobs. The interest of average people is in maximizing domestic employment and economic potential but financial planners aim at maximizing the price of real estate, stocks and financial securities relative to wage levels.

The Postindustrial economy has been a total failure.