Rate rises and inequality
Debunking Economics - the podcast
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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.
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