The best thing that the Fed could do with interest rates is let the market determine what they should be. Let people’s time-preferences determine the rate of interest on money. I would be the market clearing rate as well as the rate that would, probably entice more saving and capital investments.
The best thing that the Fed could do with interest rates is let the market determine what they should be. Let people’s time-preferences determine the rate of interest on money. I would be the market clearing rate as well as the rate that would, probably entice more saving and capital investments.