Does The Central Bank Determine Interest Rates? – OpEd
By Frank Shostak
Most experts agree that, through the manipulation of the short-term interest rates, the central bank can also determine the direction of the long-term interest rates. Some popular thinking alleges that the long-term interest rates are the average of the present and the expected short-term interest rates. Hence, it would appear that the central bank is the key in determining the interest rates. But is this valid?
Individual time preferences and interest rates
... Читать дальше...