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by imtringued
1758 days ago
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Interest rates must go down when inflation is low. If you insist on high interest rates you will also need higher inflation to justify them. Think about it this way. Interest raises the cost of borrowing, it makes reproducible assets more expensive. Over the long term you see cost push inflation. If interest rates can't be passed onto consumers then the borrower will default. That's not a good thing. |
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