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No Free Lunch with Interest Rates

The Dividend Cafe

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The Fed's Failure to Bring Business Cycle Stability Through Monetary Policy

The boom bust cycle is exacerbated in the faulty forward guidance given by a central bank. The natural rate is where you want to be at some level which nominal GDP is growing and some rules based approach that takes away on the margin, these more excessive booms and more excessive bust. An overly accommodated monetary policy comes back to bite and forces me as a portfolio manager to make because humans act.

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