glenn1
Lifer
- Sep 6, 2000
- 25,383
- 1,013
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I sincerely don't know what to say other than holy shit you're incredibly ignorant about economics. You are also repeatedly confusing the real rate of interest with the fed funds rate. Your scatter is the second time you've done this. Why are you linking images you don't understand? Furthermore, your fed funds rate chart is incredibly misleading as every chart uses a different scale. Reagan looks no different than anyone else despite the cut in rates being many times larger than what other people experienced.
I just want to be clear on this so please don't ignore it again. By saying all else being equal, that lowering interest rates does not increase GDP growth you are claiming that the entire basis for Federal Reserve policy and that basically the entire field of modern macroeconomics when it comes to monetary policy is wrong. This is a breathtaking claim that I've asked you repeatedly to provide empirical research to back up. So far you haven't provided anything other than misleading charts that you don't appear to understand. Why? I can provide you with as much research on the topic as you require so let me know.
By the way if you are right you can literally make billions in the markets with this as a basis for your investment strategy. This is not a joke. A relationship between the fed funds rate and economic growth is almost certainly a part of most trading models. You would wipe the floor with them.
As a quick primer though please feel free to read this explainer on the fed funds rate.
http://www.investopedia.com/articles/stocks/09/how-interest-rates-affect-markets.asp
Yeah, it increases GDP growth. Except for when it doesn't. Which has been more often than it actually has over the last 3 decades. Which you continue to constantly ignore.