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> Lowering interest rates makes capital cheaper, which does spur investment and thus economic development There are diminishing marginal returns to this, and w
by voisin 5y ago
> Lowering interest rates makes capital cheaper, which does spur investment and thus economic development
There are diminishing marginal returns to this, and when rates were already close to zero it is hard to imagine going to zero spurred much more than meme stocks and YOLO gambles.
- adamhp 5y agoCorrect. It is surely a non-linear function, but the statement "lowering interest rates makes capital cheaper" is generally true, and used as an economic lever in monetary policy.