The Fed’s Rate Hike

So the Federal Reserve decided to finally end its zero interest rate. This was clearly a “no brainer”. Though the U.S. dollar has strengthened against most currencies (partially because of the fact that people expected this move, and partially because of increased inflationist policies by for example the Swedish Riksbank and the ECB) and overall consumer price inflation has been near zero due to the collapse in oil prices, “core inflation” and the rate of wage increases have increased and BTW so has money supply¬†,while unemployment has fallen to a low level and the economy has been growing So even if you believe in Keynesian theory you should support it. Krugman however still does not.

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