What effects does it bring?
- Influences inflation (by controlling money flow and credit)
- Affects borrowing and spending (lower interest = more borrowing)
- Shapes investment and currency value
- Stabilizes the financial system during crises
2
6 reads
CURATED FROM
IDEAS CURATED BY
Economics and politics student from Germany. Interested in a broad field of topics and trying to easily break down topics from his studies to everyone.
In this Mini-Series, we will talk about the key concepts of macroeconomics. I will shortly explain each concept in a respective post. This is the last part of the Mini-Series, covering the monetary policy.
“
Similar ideas to What effects does it bring?
Federal Rates
The Fed rate is also tied to inflation, which impacts earnings, which affects consumer spending. Inflation also moves hourly wages and direct interest rates. This can create the impression that interest rates and consumer spending are more closely related than they are.
The Federal Reserve...
High Value at a Low Price
- Price = what you pay.
- Value = what you get.
You lose money when the price you pay does not match the value you're getting. For example, when you're paying high interest on credit card debt or spending on stuff you hardly use.
...
Compound Interest: What They Don't Tell You
- Compound interest is often portrayed by experts as a powerful tool for growing wealth.
- However, the truth is that its effectiveness relies on starting with a large sum of money and leveraging it.
- This tactic is better for maintaining income and deploying capital, rather than ...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates