commentary by Roger Erickson
The Natural Rate of Interest Is Zero
Forstate & Mosler forcefully argue here for what should have been obvious decades ago.
I think that Maxwell, Darwin, Boltzman, Planck, Eccles and Lerner would all agree with this sensible view. As would current educators such as Vandergriff and Haskins. Instead of ignoring return on coordination and our future options by restricting liquidity, and wasting so much time arguing over entirely fiat currency operations, shouldn't we be optimizing our National Options operations? Just set some insanely great national goals, so we can have insane amounts of fun tilting at them. Given consensus goals, fiat currency operations should be nothing more than the Automatic Stabilizer approach to national liquidity that Marriner Eccles set up back in the 1930s.