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
