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The Socionomic Theory of Finance — Chapter 3

Most economists and financial-market observers believe that central banks set interest rates. This notion is false. For more than two decades, socionomists have been tracking the relationship between interest rates set by the marketplace and interest rates set by the U.S. Federal Reserve, the European Central Bank, the Bank of England and the Reserve Bank of Australia. The link we have long identified — that the market leads and central banks follow, not the reverse — continues to hold.