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Yes, the common theory is that lowering interest rates encourages investment and growth, at the cost of higher inflation. This increased inflation is also gener
by nickff 5y ago
Yes, the common theory is that lowering interest rates encourages investment and growth, at the cost of higher inflation. This increased inflation is also generally thought to depress 'real' salaries, which further increases growth.
https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp https://www.investopedia.com/ask/answers/12/inflation-intere...