Tag Archives: interest rate spike

Published: 14th June 2016Download issue:Will Knut Wicksell be proved right? The Swede’s theories include the notion that there is a ‘natural’ level of interest rates, consistent with the economy operating at its full potential without overheating. But the actions of central banks have forced interest rates to artificially low levels in recent times, well below their ‘natural’ levels. If nature should reassert its predominance again, so the theory goes, then rates could shoot up, leading to...

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