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Do Fed-Induced Lower Interest Rates Promote Economic Growth?mises.org/mises-wire/do-fed-induced-lower-interest-rates-promote-economic-growth
47 sats \ 3 comments \ @Undisciplined 22 Sep econ

By Frank Shostak

Lower interest rates can help promote economic growth—as long as those rates are determined by the market and not by political edict.
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42 sats \ 2 replies \ @grayruby 22 Sep

No it promotes bidding up desirable assets. I never once thought “hey rates are cheap I should expand my business”. But I have thought “hey rates are cheap I should buy a house and rent it out”.

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40 sats \ 1 reply \ @Undisciplined OP 22 Sep

What about "Should I expand my business? Yikes! Not at these rates."?

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42 sats \ 0 replies \ @grayruby 22 Sep

I could see that for very capital intensive businesses. You are more likely to be much more discerning.

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