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Why has inflation in the U.S. remained so low, despite such low interest rates for the past 15 years?
Traditionally, low interest rates lead to higher inflation. Why not this time?
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- Anonymous4 years ago
The lowest fund rate has caused the outflow of capital to emerging countries. This has depreciated the dollar. While the banks in America have a mountain of excess reserves. The economy could not grow. AD has shifted to the right,but only minimal.
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