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How interest rates work, economics 101 & the housing crisis ft. Dr Sam Wylie

Australian Finance Podcast

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Understanding Interest Rates and Economic Policy

This chapter explores the crucial role of microeconomics and interest rates in shaping economic conditions, particularly through the lens of the Reserve Bank of Australia (RBA). It contrasts Australia's floating rate mortgage system with the U.S. fixed-rate system while discussing the impact of monetary policy decisions on borrowers and inflation. Additionally, the chapter addresses the recent challenges posed by COVID-19 and how the RBA's strategies have evolved in response to changing economic dynamics.

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