> > What would you do to boost the economy? > > > > Just curious... ;] > > > > ...! > > Me? I wouldn't do anything to boost it. It should be left entirely > on it's own. It's amazing that most didn't learn a thing from > the self imposed implosion (an economic event) of the former USSR. > Or Japan's 11 year long mess.
Unfortunately, with a debt-backed currency, (unlike an asset-backed currency, like gold), it's not possible to float the interest rate, as all interest rates are derived from the rate the central bank issues. Raising the central interest rate too much would be highly deflationary and put millions into bankruptcy, in many different ways. Lowering the central interest rate too much would be highly inflationary and creates all those problems we are familiar with, from the 1970s. So, for better, or worse, the central bank HAS to try to balance the interest rate. My view is that they should target inflation ONLY, but since the rate they impose is somewhat subjective, it's easy to see how they might be inclined to lower it during a recession. SnowDog --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Did you know that e-metal is a wonderful holiday gift? Avoid the hassle this year!
