Monday, April 15, 2013

Another Ugly Regression, Plus Inflation and Interest Rates or Something

Another nail the coffin of of the myth that loose monetary policy means low interest rates. Either monetary expansion means higher nominal interest rates or lower inflation, because these two variables are definitely correlated. And I'm pretty sure printing money does not cause deflation. This is the 10 year rate on Treasuries run against annual inflation.

No comments:

Post a Comment