Price controls in sheep's clothing

While most Americans would say that price controls are vaguely a bad thing, they're missing out on the most fundamentally damaging one:

Missed in virtually all the commentaries is the key question: Should a central bank try to manipulate interest rates? Lost in all the debate over monetary policy is the fact that interest rates are market prices that are supposed to tell the truth: the truth about actual supply and demand conditions in financial markets. [Emphasis mine.]

Richard Ebeling has more.

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Truth about actual supply

Help me with my economic reasoning. Until I can boil a concept down to a sentence or two, I'm not sure I've really grokked it. Am I correct below?

Ironically, the 0% interest rate declared by the central bank is telling us the truth--namely, that the supply of Federal Reserve Notes can be made large enough to meet any demand.

The mistake is in believing that fiat rates represent the market clearing price of actual capital at a given future date--the accumulated goods that can be combined with labor and natural resources to satisfy consumption.

Right. The Fed's interest

Right. The Fed's interest rate doesn't reflect conditions in the actual market where things are supplied and demanded. It's a political decision.

Has nothing to do with supply and demand

Has to do with more payoffs to our owners. Mortgages are now going over 6%.

Yes

I wish more economists would realize the truth of what you just said. Money in our economy is centrally planned.

What do you mean by

What do you mean by centralized? Is it controlled by the government? In my country, we use the centralized economy too and believe me, it sucks. This is also the cause of corruption and economy crisis.
Levis 501

Right. The Fed's interest

Right. The Fed's interest rate doesn't reflect conditions in the actual market where things are supplied and demanded. It's a political decision.

I think interest rate never reflect conditions in the actual market. Ever since I study economic, the notes never decide the actual market condition.
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Even though it's not

Even though it's not affecting the market, but it still have some effect when it plays the role in the monetary field. I think demand is also affecting the conditions of the market.
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Blogspam

Is there an amazing new Artificial Intelligence 'bot that can generate on-topic comments with links to commercial sites?

Or are there gold farms where people sit around all day reading blogs and getting paid to add advertising links?

More importantly, how can I get a job doing that?

Odie's Cafe

I don't think there should be

I don't think there should be a central bank. A central bank gives a few people the power to manipulate the economies of the masses. I would rather skip this whole debate and go back to a gold or other commodity based standard and let the free market decide the value and interest rates.