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54321Joe t1_j2004yz wrote

Reply to comment by ThetaGangThroweway in Why Interest Rates Should Stay High (ish). by ThetaGangThroweway

Raising the Fed rate target isn't Keynsian. Its the opposite.

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ThetaGangThroweway OP t1_j20453j wrote

Not necessarily. Keynesian Economics is the government must intervene and micromanage often because people can be stupid. It is not exclusive to creating growth

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54321Joe t1_j20bl2x wrote

Not growth per se but increasing demand. Holding a higher borrowing rate would reduce consumer demand and not stimulate the economy during recessions. Am I missing something?

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ThetaGangThroweway OP t1_j216sex wrote

Yeah. Artificially high demand has the same effect of artificially high valuations: Bubbles. If you'll recall, we were all buying stuff we don't need in 2021 and it simply was not sustainable.

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