The Unnatural Rate Of Interest (Ultra-Wonkish)

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Paul Krugman’s lat­est col­umn—“Check Out Our Low, Low (Nat­ur­al) Rates” (which he didn’t flag as “Wonk­ish”, even though it is so in spades—noted that the “nat­ur­al real rate of inter­est” was falling, and that this jus­ti­fied the low inter­est rate set by the Fed­er­al Reserve.

And this made me think about Karl Marx.

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.