tag:blogger.com,1999:blog-8897997766931633186.post8527278274993489513..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Are We Now in a Pure Credit Economy?Bill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8897997766931633186.post-77856026683012465562015-12-21T13:17:03.033-05:002015-12-21T13:17:03.033-05:00We have to be very careful with these price levels...We have to be very careful with these price levels, as inflation can be really dangerous. I don’t worry too much given that I use really strict money management with OctaFX broker, as they got 50% bonus on deposit, it is use able, so that’s why I am able to perform so well and also keep the risk well in control with such great addition, it is not possible without this help of bonus that we get with deposit starting from just 5 dollars.Roynoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-1113260144506436282011-09-26T08:06:42.663-04:002011-09-26T08:06:42.663-04:00Bill - Thanks for the comments.
My post was just...Bill - Thanks for the comments. <br /><br />My post was just trying to highlight the perverse effects of negative real rates on some of the conventional channels. Michael Pettis has noted the role of negative real rates in increased savings in China and the same could be said for India at various times in its economic history. <br /><br />Although I'm not convinced that targeting NGDP is a straightforward process (primarily because I don't believe in strong-form efficient markets), this is not key to my argument. My main argument is that I'd rather that monetary intervention take other forms than buying assets from the market, namely Steve Waldman's idea of direct transfers - the current practise of monetary policy is biased towards propping up the incumbent corporate and banking structure something which causes havoc to the Schumpeterian dynamism of the economy. <br /><br />So for example, I'd rather that the Fed institutes new firm funding/interest rate subsidies rather than buying blue chip stocks of existing firms.Ashwinhttps://www.blogger.com/profile/12538605904825633269noreply@blogger.com