Originally Posted by petegz28
How's that worked out? What has the consequence been of keeping rates low? Higher gas and food bills. The cost of living has gone up while incomes are not.
In other words, get rid of the hidden tax burden.
There's a couple of problems I see with your hypothesis. First you are assuming that the increased gas prices are associated with lower interest. While this may be the case, it may also be the case that increased demand in developing countries and in China may have pushed the cost up. (which is what is widely being reported) The second is the effect on low interest rates on large purchases such as homes. These are both untestable and cannot be assumed. It must also be proven that higher interest rates must achieve the desired results.