Why Economist John Silvia Opposes Yield-Curve Control

The video discusses yield curve control, a monetary policy where the Fed influences interest rates to manage economic activity. It highlights the problems with this approach, such as misrepresenting opportunity costs and investment risks. The discussion covers the impact on investment, cost of capital, and market expectations for inflation. The video also touches on employment as a key economic indicator, emphasizing the employment-population ratio over the unemployment rate. The speaker suggests that current low interest rates may not reflect the real cost of capital, potentially leading to future economic challenges.

What are the two fundamental problems associated with yield curve control as mentioned in the text?

How does the yield curve provide information regarding opportunity costs for investors?

What are the implications of keeping interest rates low for future investments according to the discussion?

What does the speaker suggest about the real return on 10-year Treasuries if the Fed keeps interest rates low?

What is the single most important data point that investors should look at regarding employment, as mentioned in the text?