Steve Randy Waldmanhigh interest rates are just taxes the poor pay to the rich.
LesterB99@interfluidity and low rates are how the institutions make the rich richer
@LesterB99 the rich do pretty well independent of rates, high asset prices when rates are low, high cash flows when they are high. but the asset poor have to actually pay those high cash flows, they are the net payers, so find high interest rates more burdensome.
@interfluidity I don't see how one is better than the other. I also think you know how central banking works so... it would be quite the upheaval or policy contortions to simply reduce interest paid for the poor.
@LesterB99 Interest rate policy ultimately has to become subject to democratic bounds. I have mixed feelings! People perceive now as a “high-interest” period, but from my perspective, growing up in the 70s and 80s, interest rates seem normal to low. Regardless, we can have the central bank tweak within bounds as a component of inflation / macro stabilization, but relying on it solely is a bad idea, and I think we probably want to cabin it to a range, something like 4% ± 2%.
@interfluidity central banking has democratic accountability.... it's supposed to be independent because it's supposed to adjust for fiscal policy. You don't want inflation at 10% and a capped policy rate of 6%. That's where you get Argentina bullshit.