The Role of Interest Rates in Economic Growth

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If one buys the sort of Howard Odom view that all economic activity results from transfers of energy and extraction, then interest rates could be linked to growth. I'm half warm to that argument in my book; it's an interesting thought. We're now moving into a time when there is a scarcity to natural resources such as oil which becomes more and more expensive over time to extract. You know, you can no longer just stick a, stick a rig in the, you know, in Texas or in, or in Saudi and pull it out at almost no, no marginal cost.

On this episode, financial historian Edward Chancellor joins Nate to give a meta-history of interest rates and human societies. With recent news of global financial turmoil in response to rising interest rates, taking a look at our history could help us interpret our present and plan for the future. How deeply entangled is this financial predicament that we’ve gotten ourselves into? Can we learn from the past to reshape a more stable monetary policy in the future, or are inflating financial bubbles (and popping them) simply in our human nature?

About Edward Chancellor:

Edward Chancellor is a financial historian, journalist, and investment strategist. He is the author of Devil Take Hindmost: A History of Financial Speculation and his latest book, The Price of Time, where he explains the story of capitalism is really the story of interest: the price that individuals, companies and nations pay to borrow money. He is currently a columnist for Reuters Breakingviews and a contributor to the Wall Street Journal, MoneyWeek, the New York Review of Books and Financial Times.

For Show Notes and More visit: https://www.thegreatsimplification.com/episode/67-edward-chancellor

To watch this video episode on Youtube → https://youtu.be/q5PWaYw6h5k