HomeCoinsBitcoin (BTC)Understanding The Interest Rate Fallacy

Understanding The Interest Rate Fallacy

- Advertisement -



Understanding The Interest Rate Fallacy

“After the U.S. experience during the Great Depression, and after inflation and rising interest rates in the 1970s and disinflation and falling interest rates in the 1980s, I thought the fallacy of identifying tight money with high interest rates and easy money with low interest rates was dead. Apparently, old fallacies never die.”

–Milton Friedman, “Reviving Japan,” 1998

In this article, I want to take a deeper look at a very common misconception about interest rates, namely that low rates are a sign of easy money and stimulus. This misguided belief can lead people to make incorrect assessments about inflation and, hence, their investment thesis. Today, we cover the “interest rate fallacy.”

First published here

- Advertisement -
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,547FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 56,515.00
ethereum
Ethereum (ETH) $ 4,466.32
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 564.13
litecoin
Litecoin (LTC) $ 205.64
eos
EOS (EOS) $ 3.97
okb
OKB (OKB) $ 27.67
tezos
Tezos (XTZ) $ 5.12
leo-token
LEO Token (LEO) $ 3.54
cardano
Cardano (ADA) $ 1.73
monero
Monero (XMR) $ 240.00
stellar
Stellar (XLM) $ 0.336671
chainlink
Chainlink (LINK) $ 24.71
huobi-token
Huobi Token (HT) $ 9.59
tron
TRON (TRX) $ 0.097247
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 175.91
neo
NEO (NEO) $ 36.56
iota
IOTA (MIOTA) $ 1.54
nem
NEM (XEM) $ 0.169019
zcash
Zcash (ZEC) $ 223.20
maker
Maker (MKR) $ 2,954.08
paxos-standard
Pax Dollar (USDP) $ 0.999841
ethereum-classic
Ethereum Classic (ETC) $ 47.35
vechain
VeChain (VET) $ 0.116548
true-usd
TrueUSD (TUSD) $ 0.999158
ftx-token
FTX Token (FTT) $ 49.42
kucoin-shares
KuCoin Token (KCS) $ 25.15
waves
Waves (WAVES) $ 21.36