Latter day central bankers – essentially politicians with PhDs – have furthered a mythology that by dialing one single policy rate higher or lower, that a trifecta of goals can be accomplished: steady growth, modest inflation, and “balanced” financial markets. Really, all that? But I guess if you are the institution that wields the interest rate hammer, every economic problem looks like a nail. But calling a policy “stimulative” does not necessarily make it so, nor is it even exactly clear what is being stimulated. The economy in aggregate is not a machine and the humans that are the soul of the system will not respond on cue just because the macro plan says that they should.