An Interesting Theory -Why Interest Rates are Important but not for the Reasons Commonly Assumed

At the heart of modern economic theory is the concept of interest rates being used to control the economy by striking a balance between growth and inflation. It is a concept that is so well entrenched that few would challenge its validity but when the policy is matched against outcome its track record is disappointing to say the least. Low interest rate policy has failed to stimulate the post-crash economies of Japan and Europe and the marginal success in the UK and USA has more to do with ...