Comments for "You Can't Solve Inflation With Inflation" Video at VideoSift.com

By Krupo

Krupo (http://krupo.videosift.com) — Fri, 21 Sep 2007 22:49:10 -0700

Lowering interest rates destroys people?

It's the real, not nominal, interest rate that affects how much your savings are earning - which should, hopefully, be the risk-free rate of return.

There's more thought that needs to go into this, but it's late and I'm tired.

By FishBulb

FishBulb (http://www.videosift.com/member/FishBulb) — Sat, 22 Sep 2007 03:06:02 -0700

I'm no economist, but increasing the interest rate controls inflation. Lowering it when inflation poses a possible problem leaves you open to inflation getting out of control.

By Krupo

Krupo (http://krupo.videosift.com) — Sat, 22 Sep 2007 22:55:42 -0700

You're talking about the nominal interest rate. The real interest rate is the difference between inflation and the nominal interest rate.

In theory there shouldn't be a big disconnect between the two... I'm just wondering if Ron Paul went as far as this page, though? http://en.wikipedia.org/wiki/Inflation

Maybe he's a Monetarist, though...

By siftbot

siftbot (http://www.videosift.com/member/siftbot) — Sun, 09 Dec 2007 11:35:07 -0800

Tags for this video have been changed from 'inflation, ron, paul, bernake, fed' to 'inflation, ron paul, bernake, fed' - edited by Grimm