How did the markets react to the FED's 'Operation Twist'? Dow Posts Biggest Two-Day Slump Since 2008 'U.S. stocks tumbled, giving the Dow Jones Industrial Average its biggest two-day slump since December 2008, amid investorsÂ’ concern that policy makers are running out of tools to avoid another global economic recession.' http://www.bloomberg.com/news/2011-...lobal-financial-system-risks-are-growing.html
Yields fell and the dollar gained. I love your constant predictions of inflationary holocaust that never seems to happen.
the more you artificially push interest rates down the more you harm the economy.......learn some economics will you? Operation twist in the 60's gave us the inflation of the 70's!
Given your comment isn't supportable, 'learn some economics' does seem more appropriate to your good self!
You do like to over-simplify macro result. I suppose it shows at least some consistency with your bogus remark over interest rates
when you monetize and try to play god with the economy, the end results are always dissastrous! Too bad you can't see that!
Another nonsensical comment. Monetary policy is a vital aspect of stabilisation. You could find some relevancy with much more specific comment, such as the erroneous use of the Phillips Curve by bastardised Keynesianism
the philips curve in my opinion has to do with generations...this is why they have the 50 year cycle.....as the old generation dies off the new generation having not learned from the mistakes of their parents repeat them...hence the repetition of certain patterns!
The empirical relationship is only of marginal interest. The interesting element is how the orthodox used such results to further orthodoxy to the detriment of Keynesian analysis
