Central Banks Are Not Innocent Bystanders

Tags: Business Cycles, The Fed, Money and Banks

12/03/2014 Peter St. Onge

The Economist recently opined that interest rates don’t affect investment. This claim is based on an empirical study that contradicts what we already know: that lower prices lead to more demand. In the end, the problem lies with the researches who fail to account for the behavior of central bankers, writes Peter St. Onge.

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