The Negative Impact of Interest Rates on the Economy

The central banks think they can put rates up and not have a great deal of impact on aggregate demand because people paying interest can see in less, but people receiving interest can consume more. So it's a misunderstanding of the mechanism that there's been an overshoot in private debt. And that's what I'm still thinking if they continue putting rates up, then we're going to see a recession caused by negative credit," he says.

Transcript

Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.