Where's the profit in reduced interest rates?

3quarksdaily: Operation Twist and the Limits of Monetary Policy in a Credit Economy: "If the problem with reduced real rates was simply that they were likely to be ineffective, there could still be a case for pursuing monetary policy initiatives aimed at reducing real rates. One could argue that even a small positive effect is better than not trying anything. But this unfortunately is not the case."

Steve's Law: Knowing what people have done is not an infallible way of guessing what they will do.

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