Swamponomics: Another Week Of Economic Fallacies

But additional manipulation of artificially controlled interest rates is further evidence that only the market can handle such an important matter. It is the market that can determine the appropriate rates of interest, not a dozen or so people. If this were the case, then the current decade-long boom would not rely heavily on credit. When there is an artificial jump in the supply of credit, then rates are pushed below levels that would not drive up bank credit supply and asset prices.