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Well, this is my predicament. Please do not hesitate in point out any misperceptions. My view on the motives previously were informed by the standard Keynesians canon. In a theoretical (economic textbook) sense, the Fed is acting upon what it percieves as good economics and what will benefit the economy. However, after reading Rothbards Wall Street
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What incentive does the Fed have in lowering interest rates?
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So, are you saying the Fed is attempting to eliminate competition by lowering rates? When I say 'banks' in my original post, Im talking about the banks that control the Fed. I might be confused here though.
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This is going to be vastly oversimplified, but can someone help me understand what incentive these banks have in keeping interest rates low? It seems like they could make more money, and have a more sustainable business model even with their monopoly status, in keeping interest rates reasonably connected to the market . One would think that these major