4 ms·
The effect on cheap money on anti-competitive practices is massive and almost nobody knows about it.
by nostromo 4y ago
The effect on cheap money on anti-competitive practices is massive and almost nobody knows about it.
- munificent 4y agoCount me as one of the people who doesn't know about it. Can you explain more?
- ravel-bar-foo 4y agoI don't know about this specifically, but my guess is that when loans are cheap it is much easier to perform a leveraged buyout: taking out a loan on the assets of the company being acquired.
- nostromo 4y agoIt's dense, but here's a good paper on it: https://www.nber.org/papers/w25505 https://www.nber.org/papers/w25505 And here's a more accessible article about the relationship: https://www.chicagobooth.edu/review/how-low-interest-rates-can-hurt-competition-and-economy https://www.chicagobooth.edu/review/how-low-interest-rates-c...