Interest and the Price of Time
As of the release date of this episode, the prime interest rate in the U.S. had surpassed six percent, nearly double the rate a few months earlier.Are higher rates good or bad for the economy? What about lower rates? The answers may seem self-evident, but should we be over-confident with our opinions? What about the law of unintended consequences when rates are universally low for an extended period of time?Additionally, how are rates determined? Why do they go up or down? What is the history...