Just posting this for the true nerd who is interested. Scott Sumner has a post up discussing how the Neo Fisherian debate misses the point because it’s too focused on interest rates.
I think Scott is right. That whole debate views interest rates as the Archimedean Lever in the economy. It is a view based on the Natural Rate of Interest concept which I have been so critical of. Anyhow, I think it’s interesting when I agree with Sumner because it doesn’t happen often….
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