
Time to Focus on Inflation Again
All Things Policy
00:00
How Do Interest Rates Affect Growth?
In some sense, the est rate is what i would call as the price of money. So in an economy when arbei controls the interest rates, or at least directs the interest rates by hiking or lowering its interest rate, the reference rate, the cost money, changes. When money is cheaper, in that sense, that is, the cost of money goes down. And when more people borrow, they essentially, you know, I mean, what do they borrow for? It could be a home loan, personal loan, car loan, et cetera. Is when demand is higher than the production or supply, will also kind of increase - which means there more jobs created and income
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