Deja Vu

By |2017-08-28T19:13:26-04:00August 28th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

According to orthodox theory, if interest rates are falling because of term premiums then that equates to stimulus. Term premiums are what economists have invented so as to undertake Fisherian decomposition of interest rates (so that they can try to understand the bond market; as you might guess it doesn’t work any better). It is, they claim, the additional premium [...]