The article argues that current market borrowing costs are rising independently of the Federal Reserve's policy stance, challenging the assumption that the Fed controls all rates. Evidence shows significant increases in key rates—such as 2-year Treasuries and mortgages—even while the effective federal funds rate remains steady. This divergence occurs because market rates reflect complex factors like inflation expectations, credit risk, and geopolitical volatility, which are outside the central bank's direct control. Policymakers should therefore recognize that sustainable rate moderation requires credible disinflation and disciplined government budgets, rather than relying solely on Fed intervention.
Argentina Graph of the Day: Starlink Connects Millions of People
English Summary
Argentina's deregulation of satellite internet access, initiated by the Milei administration, has led to an explosive increase in connectivity, bringing services like Starlink to millions of previously isolated citizens. Key evidence shows that this liberalization has immediately boosted sectors such as mining, energy, tourism, and precision agriculture, proving that high-cost internet access was previously a regulatory bottleneck. This case serves as a model for how targeted deregulation can dismantle regulatory rents held by special interests, suggesting that deep economic liberalization is a powerful engine for broad national development and efficiency.
中文摘要
阿根廷在米萊（Milei）政府推動下，放寬衛星網路接入的管制，引發了連接性的爆炸性增長，使星鏈（Starlink）等服務得以惠及數百萬此前孤立的公民。關鍵證據顯示，此一自由化措施立即提振了採礦、能源、旅遊和精準農業等產業，證明了高成本的網路接入此前曾是監管上的瓶頸。此案例可作為一個典範，說明有針對性的管制放鬆如何瓦解特殊利益集團所掌握的監管租金，並暗示了深度經濟自由化是推動廣泛國家發展與效率的強大引擎。
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