Last
week the Federal Reserve chose not to raise interest rates. It was the
right decision. In fact, I’m among the economists wondering why we’re
even thinking about raising rates right now.
But
the financial industry’s response may explain what’s going on. You see,
the Fed talks a lot to bankers — and bankers reacted to its decision
with sheer, unadulterated rage. For those trying to understand the
political economy of monetary policy, it was an “Aha!” moment. Suddenly,
a lot of what has been puzzling about the discussion makes sense: just
follow the money.
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