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An interesting claim

Richard Murphy says:
December 20 2023 at 2:47 pm
Ok guess you know very little of economics

The only way interest rates can reduce inflation is by creating recession

Not a true claim, but an interesting one.

The truth being that we’ve a got a range here, from 50% growth to 50% drop in GDP. (say). Say that interest rates can cause a recession and deflation. That v strongly implies that there’s some level of interest rates which curbs excessive growth but doesn’t, in fact, cause a recession.

You can also substitute inflation for grwoth there and gain the same result.

7 thoughts on “An interesting claim”

  1. I presume by the tilt of his statement the knowledgeable professor is in favour of low interest rates. Since there have been since before 2008 & up until recently, artificially low interest interest rates approaching zero & the economy has turned into a pile of shit, he wants more of the same?
    I’d advance a different suggestion. Since government economists (like all economists) are a bunch of useless cunts, government should get out of setting interest rates altogether. Since, historically they’ve always got it wrong. The market should do it. As, collectively, we understand far more about what the economy needs than fucking economists. Particularly this pretend one.

  2. Last year Spud did one of his pious “I’m not going to be blogging over Christmas” announcements (to encourage his leftard audience to tell him how much he deserved a break) and he then proceeded to blog virtually non-stop over the Christmas break, including on Christmas Day itself.

    This year he’s announced that he will be blogging over Christmas because he knows how important his blogging is to his readers.

    Aren’t we lucky.

  3. Murphy is a moron,

    Not so long ago it was ‘interest rates were cut to benefit the rich’, now its interest rates went up to benefit the rich.

    In fact anything that happens that he doesn’t;t propose is to ‘benefit the rich’…

    It’s funny how he keeps claiming that the BoE (and other Central banks) want to create a recession, but can never provide any justification for why, or who would gain from this.

    He’s an absolute loon.

  4. the BoE (and other Central banks) want to create a recession
    If only. Productivity would soar & the economy boom. One thing you can guarantee. Whatever they do, they’ll get it wrong.

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