Monday, October 29, 2018

Unicorns and neutral policy rates

neutral policy rate exists somewhere between a unicorn and socially oriented corporations Progressives need remember  The rate structure for dollar debt  Is social engineered by the complex Of federal and wall street institutions  It no more emerges from pure market transactions  and  pure market participant expectations  Then a fly emerges by spontaneous generation from horse apples  AND There is no neutral rate of intetest Where output prices are in steady state  only more or less succesfully contrived  Steady rates of Inflation .......... One could define a path of policy rates that result from attempts to stabilize the rate of output inflation over some time interval But that path of rates  would presumably  be arrived at thru macro managers adjustments to anticipated inflation outcomes  This is active management to expected outcomes  not talking about where something called a price impact netural policy rate might be  neutrality exists  Invisibly dancing before their eyes