We’re told when the Fed raises rates, that’s tightening. When it lowers rates, that’s loosening. But there isn’t a single price of money, no single interest rate. Even the supposed direction of interest rates is at the very least far more complicated than what the textbook has you imagine. There are various complexities, parts, pieces, motivations, and perceptions. Money is all relative.
The Basics #6: Money Relativity
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