[lbo-talk] Krugman on interest rate weirdness

Doug Henwood dhenwood at panix.com
Mon Mar 24 10:34:47 PDT 2008


On Mar 24, 2008, at 1:02 PM, Michael Pollak wrote:


> Well his argument is that the Fed rate is now 2.25%, but the
> treasury rate
> on both 1 and 3 month notes is a little above 0.5%

It would be a serious problem if the Fed couldn't hit its target - if, say, funds were 3.0% when the target is 2.25%. That would be a sign of serious stress. But they're hitting the target.



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