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Old 03-18-2016, 12:47 PM   #41
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Eh? Nothing to do with elections in an individual country.

Economic systems tend to be mathematically chaotic systems. We can apply pressure on a system to try and steer it a bit, but often the chaotic 'noise' overwhelms the steering pressure that poking a single variable (e.g. Overnight interest rate) can have. A sudden loss of confidence in a market (Tulip Mania crash) or a misstep in fiscal policy (e.g. "Austerity economics" in Europe recently) can have a much larger effect than tinkering with a handful of variables available to a central bank.

Monetary policy is just one tool, and not a particularly powerful one. It is often compared to "pushing on a string" in terms of effectiveness.

You can google "chaotic systems" and "bifurcation point" for more information on those terms.

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My comment was (apparently) a poor attempt at humor. Your reference to traveling through alternate dimensions/chaotic systems struck a chord as equally descriptive of current state of US presidential politics. Hence, my "joke"...


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What happens when you let academics influence the real world...
Old 03-18-2016, 07:25 PM   #42
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What happens when you let academics influence the real world...

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Originally Posted by LARS View Post
My comment was (apparently) a poor attempt at humor. Your reference to traveling through alternate dimensions/chaotic systems struck a chord as equally descriptive of current state of US presidential politics. Hence, my "joke"...


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*SIGH*

Listen to the original Twilight Zone opening. There's this dude named Rod Serling who says some stuff that might be familiar. Oh, and mathematics and chaotic systems predate the 'current state of US presidential politics' by a few years. Just a few...

http://youtu.be/zi6wNGwd84g

It's a joke.
http://youtu.be/KTwnwbG9YLE




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Old 03-18-2016, 07:52 PM   #43
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And yet . . . IMF's Lagarde Says Negative Rates Have Helped Global Economy

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If we had not had those negative rates, we would be in a much worse place today, with inflation probably lower than where it is, with growth probably lower than where we have it,” Lagarde said. “It was a good thing to actually implement those negative rates under the current circumstances.”
Meanwhile, the Business Insider article linked in the OP concludes with this recommendation . . . "the step that comes after zero ought to be fiscal stimulus — government spending — not negative monetary stimulus."

And that's precisely what "The Academics" in general and Ben Bernanke in particular had been arguing for at least 5 years now. But after that recommendation fell on deaf ears, and with Central Bankers repeatedly undershooting their growth, inflation and unemployment mandates, they've resorted to the second best options available to them. What should they have done instead?
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Old 03-19-2016, 06:13 AM   #44
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*SIGH*

Listen to the original Twilight Zone opening. There's this dude named Rod Serling who says some stuff that might be familiar. \
FWIW I got the reference.

(...kids these days....)
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