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Warren B. Mosler
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With floating fx/non convertible currency the govt of issue can set the nominal rate at any level it wants to. There are no market forces that come to bear on the nominal interest rate. The Fed votes on the rate and that's where it goes.
Mar 09 19:16 pm
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All Comments by Warren B. Mosler »Commodities' Surging Price: The Fed Connection [View article]
see 'Soft Currency Economics' at moslereconomics.com