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Whichever approach is chosen, the funds should be low-interest and easily accessible.
In such a thrifty economy, interest rates should be low, credit should be readily available and investment should be high.Yet in 2009 and 2010 things went too far.
Also, socks should be low cut.
Hop bitterness should be low or absent.
When the housing market heats up, as it did between 2002 and 2004, the last thing the Fed should offer is low interest rates.
They should also be low.
In the face of a feeble recovery, the Fed should be keeping interest rates extremely low.
A RECENT academic study seriously undermines a popular reason for not worrying about the high price-to-earnings ratio of the stock market today: the idea that the ratios should be high when interest rates are low.
With inflation low, the E.C.B. should be pushing interest rates into negative territory or buying government bonds.
It could be argued that there is no point in paying any higher price than one needs to and that the rate of interest should be as low as is consistent with the performance of the function of the financial markets.
I think the Fed should be raising interest rates because I think interest rates are too low and at this late date in the business cycle expansion phase low interest rates are not accomplishing any particular function.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com