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Ones and Tooze cover image

The Impact of Interest Rate Cuts

Ones and Tooze

NOTE

Embrace Uncertainty: Expectations Shape the Future

The impact of a significant interest rate cut is not just empirical but heavily psychological, affecting expectations within the economy. Understanding the balance between measurable economic effects and interpretative expectations is crucial. The future of the economy remains largely uncertain, with current models serving as our best tools for prediction. Thus, expectations play a pivotal role in economic behavior as they influence decisions and perceptions about what is to come.

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