Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
If interest rates are as irrelevant as you claim, why is it virtually the only policy tool the ECB actually uses on an ongoing basis?

Because neoclassical monetarism says that the only thing the central bank should or could worry about is inflation, that inflation is due to the growth of the money supply, and that the size of the money supply is controlled by setting the interest rate.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Tue Sep 13th, 2011 at 02:35:43 AM EST
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