It is also a Tax on Saving, Retirements, and responsible behavior
It encourages irresponsibility and debt, and discourages people from saving, planning for their future, and over all acting in a way that is not filled with instant gratification, or extremely leveraging themselves
That provides good short term growth, but then you have recessions and depressions because at some point those balance sheets have to be balanced
> It is also a Tax on Saving, Retirements, and responsible behavior
Unexpected inflation is. Predictable inflation is easy to account for.
I live in New York. My basket of goods included until recently rapidly-increasing real estate prices. That is the benchmark against which my money managers are judged. It is true that this forces them to invest more riskily. But that is a systemic lever inflation and interest rates are designed to tweak: low interest rates beget risk taking.
A healthy economy needs both savers and risk takers,
What is happening today, the marginal rate @ or below zero there are no savers, that is equally as bad as high interest rates where no one was taking any risks
Based on what? Savings are the rue of Keynesian economics. And they at best do nothing in monetarist frameworks.
> the marginal rate @ or below zero
Marginal nominal rates are between 0.09% (1 mo.) and 1.63% (30 y.) [1]. Real rates are negative [2], but to the tune of -1.22% (5 y.) to -0.26% (30 y.), which hardly discourages rainy-day saving. For anything more than that, surplus capital should be invested, not hoarded.
