Scott Sumner: Of all the things that puzzle me about macroeconomics, the relationship between changes in monetary policy and changes in long-term interest rates is perhaps the most confusing. I get why monetary injections tends to reduce short-term rates----prices are sticky and short-term rates temporarily fall to equilibrate monetary supply and money demand, until prices have time to adjust. But prices are not sticky for 30 years.
Scott, let me say one thing, inflation protected entitlements. When was the last time we did a social security update? Around 1984, or 31 years ago, damn sticky donchya think?
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