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Low Interest Rates, Market Power, and Productivity Growth [pdf]

2 pointsby BlackVanillaover 4 years ago

1 comment

BlackVanillaover 4 years ago
For the layperson (like me), here are some explanatory articles. How low interest rates can hurt competition, and the economy (<a href="https:&#x2F;&#x2F;review.chicagobooth.edu&#x2F;economics&#x2F;2019&#x2F;article&#x2F;how-low-interest-rates-can-hurt-competition-and-economy" rel="nofollow">https:&#x2F;&#x2F;review.chicagobooth.edu&#x2F;economics&#x2F;2019&#x2F;article&#x2F;how-l...</a>), Low Interest Rates, Market Power, and Productivity Growth (<a href="https:&#x2F;&#x2F;bfi.uchicago.edu&#x2F;insight&#x2F;research-summary&#x2F;low-interest-rates-market-power-and-productivity-growth&#x2F;" rel="nofollow">https:&#x2F;&#x2F;bfi.uchicago.edu&#x2F;insight&#x2F;research-summary&#x2F;low-intere...</a>).<p>Here are some questions this conjured for me<p>1) Do you think low interest rates are the primary cause of long-term sluggish growth in the last decade or so?<p>2) What role has quantative easing had in accelerating this and should central banks stop quantative easing programmes?<p>3) Despite low growth (if the claim is true), have low interest rates been a necessary evil to avoid the 2008 Financial Crisis turning into a depression?
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