Central-Bank Policy Does Not Control Interest Rates; It’s the Other Way Around

Most economists and financial-market observers believe that central banks set interest rates. Learn why this notion is false, plus discover what does set interest rates. Excerpted from The Socionomic Theory of Finance (Chapter 3).

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Meet Your Authors


Alan Hall

Alan Hall Senior Analyst, The Socionomist

Alan Hall received his degree in Fine Arts from Berry College, emerging into the 1970s bear market. He began studying Elliott wave analysis and socionomics after meeting Bob Prechter in 1995. His knowledge of socionomics made it easy for him to recognize the escalating housing mania, so he ended his building business in late 2004 and came to write for EWI in 2006.

Areas of research include Russia, authoritarianism, commodities, cyber warfare, disease, education trends, environmentalism, epidemics, eugenics, politics, sugar, and WikiLeaks.

Mark Galasiewski

Mark Galasiewski Editor, Asian-Pacific Financial Forecast

Mark Galasiewski (gala-SHEV-ski) lived in Japan for most of the 1990s. A graduate of Middlebury College (Vermont, USA) in East Asian Studies, he is fluent in Japanese and conversant in Mandarin Chinese. In his monthly commentaries, Mark not only discovers opportunities in Asian-Pacific markets, but also shows how cultural and political events relate to financial trends in the region. He has traveled to many of the countries he writes about, including Japan, China, South Korea, Hong Kong, Singapore, Thailand, Cambodia, Egypt and Jordan.

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Robert Prechter

Robert Prechter

Robert Prechter began his professional career in 1975 as a Technical Market Specialist with the Merrill Lynch Market Analysis Department in New York. He has been publishing The Elliott Wave Theorist since 1979 and is the president of Elliott Wave International. He is also founder of the Socionomics Institute, which studies social mood and its impact on social action, including the stock market and the economy.