tag:blogger.com,1999:blog-3758330678390419129.post3678254594015780714..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: Have I Gone Keynesian?Robert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-3758330678390419129.post-35090101548926083622015-12-07T20:43:23.418-05:002015-12-07T20:43:23.418-05:00I’ve studied your argument. I think we share more...I’ve studied your argument. I think we share more views than not and am more clear now on where we diverge. Here’s what I see:<br /><br />Weakness #1) Observing that the Fed Funds Effective rate can slightly differ from Fed Funds Target rate is a triviality. It makes no meaningful difference because Fed operations ensure the gap between them almost never gets beyond 10-20 basis points: https:/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-15676260907796073572015-12-06T10:28:39.084-05:002015-12-06T10:28:39.084-05:00An excellent post, sone. Just ignore the name call...An excellent post, sone. Just ignore the name calling. A point of logic, that the fact that Wenzel believes that the Fed will raise rates, correctly this time I think, doesn't mean he doesn't think it would cause harm, and thus doesn't make him a Keynesian. He could hold the belief that they will raise rates and it will cause massive harm like some others, e.g. Rickards. Although in Josiahhttps://www.blogger.com/profile/02283350026155164077noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-58407792041844195302015-12-06T09:47:13.095-05:002015-12-06T09:47:13.095-05:00"Economics in One Lesson" by Hazlit and ..."Economics in One Lesson" by Hazlit and "what has the government done to our money" by Rothbard are entry levelkingofbaconandeggshttps://www.blogger.com/profile/12603502441619593645noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-10151139577421892952015-12-06T00:04:42.986-05:002015-12-06T00:04:42.986-05:00Thanks for the thoughtful reply. Responding to op...Thanks for the thoughtful reply. Responding to opposing views with content reflects highly upon you and is appreciated over radio silence. I'll go digest and study what you wrote. You are more experienced and formally qualified than I to dissect Fed machinations. If you prove me wrong in this case, it will be my educational gain, and I will owe you my thanks for setting me straight.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-13424133384319194342015-12-05T22:43:40.312-05:002015-12-05T22:43:40.312-05:00Short to medium term economic predictions are a fo...Short to medium term economic predictions are a fools game. None of these rates is knowable with precision. Even the money supply growth rate is a government statistic based on faulty assumptions. You waste your time with this as there is no need to predict. Set your targets, manage your risk and execute when you hit your targets.Brian Ericksonhttps://www.blogger.com/profile/10188778202762603278noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-53743559043322435202015-12-05T20:47:55.721-05:002015-12-05T20:47:55.721-05:00RW refers to 3 different interest rates here: the ...RW refers to 3 different interest rates here: the Fed target rate (FTR), the Fed effective rate (FER), and the normal or market rate. The FTR is actually a range, currently between 0.00 and 0.25. The FER is the actual interest rate, and the Fed manipulates it using open market operations (money printing), but they keep it within the target range. The normal rate is what the rate would be if the Jessehttps://www.blogger.com/profile/10970586845001280417noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-23738465279419769942015-12-05T19:51:32.624-05:002015-12-05T19:51:32.624-05:00The analysis did apply the last couple of rounds, ...The analysis did apply the last couple of rounds, but their fears and kick the can won out. That's what I felt would happen and it did. They kicked the can but the can is up against a wall now. They are stuck. To remain credible they have to increase by something however small and irrelevant. Jimmy Joe Meekerhttps://www.blogger.com/profile/09559104650594440766noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-77964581311308422542015-12-05T16:56:35.386-05:002015-12-05T16:56:35.386-05:00Thanks for taking the time to respond. Kinda toug...Thanks for taking the time to respond. Kinda tough to follow, though. You replied to the statement "RW thinks that higher rates will not start to rupture artificially levered-up asset price bubbles" by saying "all Fed rate hikes (particularly 25 bps) will not start a crash of the Fed manipulated economy." Levered up asset price bubbles and the economy are not the same thingAnonymousnoreply@blogger.com