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>artificially low interest rates Interest rates are set in agreement between borrowers and lenders, and hence are always artificial. As far as optimality, the
by hnnewguy 11y ago
>artificially low interest rates
Interest rates are set in agreement between borrowers and lenders, and hence are always artificial.
As far as optimality, the "best" rate is one as low as possible without causing inflation.
- collyw 11y agoI don't get any say on the interest rate my bank gives.
- honksillet 11y agoWell, yes you do. You get to option to take the loan or not take the loan.
- collyw 11y agoI was referring to savings.
- smil 11y agoInterest rates are set by central banks in order to cause and increase inflation.