4 ms·

I'm not sure what you're talking about now. There are no market forces acting on projections: that's my point. EDIT: and LIBOR isn't much of a projection, it i

• coliveira 9y ago
  I am talking about projections of growth and their relationship to interest rates. Interest rates have to be paid based on future earnings, but projections for future earnings have always a big variance. Therefore, small changes in interest rate have little meaning in terms of capacity of repayment, but have great meaning in term of money made by banks (or in terms of policy, by central banks). That's why it is so easy to manipulate interest rates within certain limits, contrary to what you said about resulting inflation.