Bare Naked Economist critique of Ray Dalio's 'How the economic mahine works' video

[Note: these are Lillicrap's views not his employer's whose views may be different]

[moneyisneutral]

Good stuff Damo! Additional note: monetary policy directed at changing nominal rates might not change real rates if inflation is anticipated. The nominal curve will move but the real curve which drives investment decisions could stay the same apart from a one off wealth transfer from people who own money to people who don't.  

[AndrewPalmerJazz]

There is a lot here, but I'll pick on one point: The advantage of machines over labor has nothing whatsoever to do with low interest rates (and a low cost of capital). A dollar out the door is a dollar out the door whether it's given to an employee or spent on a machine. The accounting rules differ for each case, but businesses should actually favor labor since labor costs are taken out before taxes and since capital expenditures (like buying new machines) are paid out of profits after taxes. Other than that, the financing side is the same. Machines will only beat labor because they are determined to be more efficient at doing the same job.

[peru]

lower rates a not supporting the bare population is designed  so the house market is stagnated on the contrary is helping the big banks  just the wealthy rich to benefit in this inclusion so that is the only mean to produce more money or nominal notes to that extend  until this is offsets by its on value then total global collapse  end of the  cycle God help some humans to survive to pick up us into a new era lets hope

[hkrumble]

Frickin boring. Get to the point quickly pls.