Why High Borrowing Costs Are Here to Stay
When central banks like the US Federal Reserve make an interest rate decision, they’re reacting to a bundle of domestic and external factors. Those factors used to push down on borrowing costs. Now, after decades of cheap money, they are pushing up. It’s a massive change.
Bloomberg Economics crunched 50 years of data to show why interest rates are likely to stay high, and what it means for everything from house prices to the stock market and your pension.
Chapters:
00:00 Introduction
00:42 What the price of money means
2:00 The natural rate of interest
2:46 Why money was cheap
4:40 A new high-interest rate regime
6:37 Winners and losers
#money #inflation #bloomberg
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