Over here, I pointed out a seeming concession from Brad DeLong regarding the risks of low interest rates. With a bit more time, I notice another point to quibble with, which speaks more directly to the core argument in his post.
He chooses to favor the current entrepreneur over the current retiree/saver. I’m curious, how does an expected debasement of future profits impact incentives for the current entrepreneur? Which, of course, is not helped any when those future profits are also made to be more uncertain in the context of an unstable economy driven by low interest rates and Ponzi financing.
