Quote:
Originally posted by MaxDent
The government's job is to provide security and instill global economic confidence.
Businesses are responsible for expanding/building/R&D/creating jobs.
Banks know that if they raise interest rates during a resession/downturn/slump they risk losing business. Additionally, the banks are learning this when forclosures on homes goes up.
....I'm a bit high but I can explain further if you'd like.
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i'm just spitting out two different opinions on the subject. deficits cause upward pressure on interest rates that can cause the crowding out effect to occur. if there's an excess of loanable funds then the crowding out effect is less likely. since we're not in a recession its not likely that there is an excess.