Which best describes the effects of low and high interest rates on the economy? This is a question we received during one of our webinars this weekend, and it is not surprising that we continue to field question after question on interest rates.
We don’t blame our customers or readers for continuing to bring up these types of questions. It ‘s hard these days to not see current mortgage rates (which are indirectly tied to interest rates) being posted at the top of most websites and newspapers.
However, very few people have a complete understanding of interest rates and specifically how much they impact the general economy. We will get into this as this article progresses, but as we become more and more addicted and reliant upon debt as a society, we will be thriving or not almost entirely on the effects interest rates have on world economies.
Here we go, our answer to the question, “which best describes the effects of low and high interest rates on the economy?”