Hacker News new | ask | show | jobs
by whimsicalism 1437 days ago
> continued stimulus.

What do you mean by "continued stimulus"? There is no natural rate of interest.
2 comments
credit_guy 1437 days ago
The natural rate of interest is the one where supply meets demand. The Fed, with its enormous balance sheet, distorts the supply/demand equation.
link
01100011 1436 days ago
Go look up the 'taper tantrum' and see what happened when the fed tried to normalize its policy a few years ago.
link
whimsicalism 1436 days ago
"normalize" does not mean anything because there is no base rate of interest. the Fed underpins the whole thing as it provides the reserve balances for our currency.
link