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If interest rates go down, the value of current profits increases and the value of future profits decreases. This would incentivize companies to be slightly mo
by onlyrealcuzzo 3y ago
If interest rates go down, the value of current profits increases and the value of future profits decreases.
This would incentivize companies to be slightly more "greedy" if you define "greedy" by "seeking current profits".
In practice, a bunch of data scientists have looked into "greedflation", and I'm not aware of anyone finding anything significant.
NPR did an episode on it: https://www.npr.org/2023/06/13/1182019025/is-greedflation-really-the-villain https://www.npr.org/2023/06/13/1182019025/is-greedflation-re...
If you start with the world view that companies are evil and the source of all problems, it's easy to see "greedflation" everywhere.
Seek and you shall find.