Comment on Economy Looks Like It's Picking Up Which Could Mean a Slowdown in Tech InvestingparentComments−smil11yIndeed, the US (and the EU) economy is being kept on life support through Quantitative Easing and artificially low interest rates. But the patient is already brain dead.−hnnewguy11yartificially low interest ratesInterest rates are set in agreement between borrowers and lenders, and hence are always artificial.As far as optimality, the "best" rate is one as low as possible without causing inflation.−smil11yInterest rates are set by central banks in order to cause and increase inflation.−collyw11yI don't get any say on the interest rate my bank gives.−honksillet11yWell, yes you do. You get to option to take the loan or not take the loan.−collyw11yI was referring to savings.
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Indeed, the US (and the EU) economy is being kept on life support through Quantitative Easing and artificially low interest rates. But the patient is already brain dead.
Interest rates are set in agreement between borrowers and lenders, and hence are always artificial.
As far as optimality, the "best" rate is one as low as possible without causing inflation.
Interest rates are set by central banks in order to cause and increase inflation.
I don't get any say on the interest rate my bank gives.
Well, yes you do. You get to option to take the loan or not take the loan.
I was referring to savings.