Conundrum #2: Lowest Lows
If low rates are stimulative like we’re told, then why didn’t the 1930s boom? Or Japan in the 90s? How about Europe with negative rates in the 2010s? China 2020s? Real world experience doesn’t just seem to run contrary to everything we’re taught about rates, it always does. That record goes far back to the very beginnings of the modern industrial economy and its always-evolving monetary system. Through it all, interest rates have behaved consistently. It’s Economics that has changed; or tried to.
