Quote:
Originally posted by Buff@Jun 17 2004, 07:46 AM
The Fed reduced the discount rate from 7% in 1921 to 3.5% in early 1928, but raised it to 5% by the end of the year.
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I would say that the discount rate and tax rates are both important for growth but are you arguing that the discount rate is more important?
The discount rate remained unchanged from 9/60 to 6/63 and rose significantly through 1968. So the discount rate went from 3% in 1963 to 5.5% in mid 1968 while income tax collections rose by more than 50 percent during that period. So - if you ARE saying that - how is the discount rate a more general predictor than tax rates?