The Centre for Independent Studies is renowned for its fantasies about how “free” markets work. In today's SMH their director and economics research fellow write about Hayek, the free market and interest rates.
Interest rates in Australia are actually controlled, though for economic (price stabilisation) not political (home ownership) goals.
They are right to point to the role of artificially low interest rates in creating the US bubble from which the GFC emerged. Would they like to explain why these rates were imposed by the supposed paragon of the free market, Alan Greenspan?
Will they also educate Shadow Treasurer Joe Hockey on why it is appropriate to keep economic stimulus in fical policy while allowing interest rates to return to normal levels?
Novae Meridianae Demetae Dexter delenda est
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