Flow of goods or asset-based models for the economy

There’s an interesting discussion going on about how US interest rates can be staying so low, which starts an even more interesting discussion about whether an asset-based or a flow of goods and services-based approach to the economy makes more sense. The asset-based one certainly helps make people more confident in their “not really money” gains in housing, property, etc. [Update: more from the Economist as well]

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