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Milton Friedman, the godfather of monetarism, famously declared that monetary policy worked with a lag. Change the supply of money, or change the rate of interest, and its effect would only show up in the big economic aggregates more than a year later. But since the unprecedented shock of the pandemic, it’s experiencing the longest lag in history. Secretariat-like, the economy continues to gallop far ahead of the Fed. The dramatic rise in interest rates engineered by the Federal Reserve has, to date, had little discernible impact on economic growth or employment. Working out just why this has happened now becomes critical both for the Fed and investors as they try to navigate a course through the post-Covid world.

QOSHE - A Gap Like Secretariat Opens Between Economy, Fed - John Authers
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A Gap Like Secretariat Opens Between Economy, Fed

5 1
28.02.2024

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Milton Friedman, the godfather of monetarism, famously declared that monetary........

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