The Conversation

Risk on? Interest rates could stay low for decades

Author: The Conversation

We can expect low rates for a long time.Image sourced from Shutterstock.com

When a central bank lifts interest rate targets by 0.5% it expects households and firms to respond. In a crisis, the official target may fall by 3% in order to shock the economy into a positive response. These movements of interest rates by the central bank are an important...

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