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[Tuff-Stuff]

Fed’s low rates may be stifling growth, economist argues

Published: May 23, 2016 3:52 p.m. ET

Why there could be a Laffer curve — for the fed funds rate

The Laffer curve took over the conservative conversation on taxes nearly from its introduction.

Popularized by Arthur Laffer — reportedly sketched on the back of a napkin — the Laffer curve illustrates that there’s a point where a decrease in tax rates actually increases tax revenue.

‘Every time the Fed publicly dallies with the idea of raising rates, and then backs off, it reinforces the idea that the recovery has no momentum.’
Ian Shepherdson, Pantheon Macroeconomics

more http://www.marketwatch.com/story/why-there-could-be-a-laffer-curve-for-the-fed-funds-rate-2016-05-23