causes in the world of economics

We suggest that a steep increase in long-term interest rates since July 2020 is likely in response to the sharp decline in the pool of savings brought about by reckless government and Fed policies. The fact that individuals pursue conscious, purposeful actions implies that causes in the world of economics emanate from individuals, not from various factors. Every individual assesses changes in various factors against his goals. It follows that neither monetary “liquidity,” nor economic activity, nor inflation expectations are the essence of what determines interest rates. It is individual decisions regarding present consumption versus future consumption that is the key determinant of interest rates. Monetary policies only distort interest rate signals, thereby leading to a misallocation of resources, which leads to the boom-bust cycles สล็อต