The new economy policy is beyond interest rate and currency value concerns.
It is now material cost and production capacity concerns.
For instance, since US economy is base on automobiles. Gasoline costs will control our economy. If gasoline cost is too high, lack of use of gasoline will prevent people from shopping. and the economy will tank, starting with restaurant closings.
The minute gasoline price comes down to reality, the economy immediately picks up.
Fortunately, gasoline formulations had been changing away from petroleum and is basically water(ethanol) now with minute amounts of explosives liquid(MTBE) or gas(nature gas).
Our economy is build in four sectors, food, clothing and entertainment, automobiles, and housing. Nut it is basically an automobile economy; people go places to spend money.
So, interest rates and currency valuation and all the top down economical policies are abandoned, to do microeconomy based on business management. More production will lower cost of material, and cost of higher standard of living. |
