Does anybody here remember 1982? When interest rates went very high, and so asset prices went very low. Just the opposite of today.
What were people saying back then?
1. Were they saying: "Central banks are setting high interest rates and making asset prices low, which is bad for the rich, who own all the assets"?
2. Or were they saying: "Central banks are setting high interest rates, which is good for the rich, who have all the money to lend"?
Because my memory isn't very good. But I thought they were saying the second, back in 1982. And nowadays I think I hear the first, only in reverse.
P.S. And is anyone today writing a book about "saving the hippo"?
P.P.S. Maybe the underlying problem is that many people think about policy actions, when they should be thinking about policy regimes. Thinking about policy regimes imposes a symmetry on our analysis.