After reading “How High Should Interest Rates Be?” several people asked me: Which rate are you talking about? Do you really mean the federal funds rate or do you mean commercial rates? This is always a problem for economists. We talk about “the interest rate” but of course there are many interest rates in an economy. So let me be more clear.
Global Economics Q&A: Which Interest Rates?
Global Economics Q&A: Which Interest Rates?
Global Economics Q&A: Which Interest Rates?
After reading “How High Should Interest Rates Be?” several people asked me: Which rate are you talking about? Do you really mean the federal funds rate or do you mean commercial rates? This is always a problem for economists. We talk about “the interest rate” but of course there are many interest rates in an economy. So let me be more clear.