What happens when interest rates rise?

Well?

Less loans

Costs me more to borrow stock.

Government gets fucked. What they will do is keep interest rates so low for so long that the next crash will be devastating when it eventually happens.

2008 2.0

What this user is trying to say is "B-BUY GOLD AND SILVER!".

High interest rates = cost of borrowing rises = people take out less auto loans and mortgages = economy slows down

Low interest rates = cost of borrowing falls = people and businesses take out more loans = more economic growth

lol k

>economy is shit
>interest rates have been near zero for the past decade

negative interest rates here we come

Low interest rates
>inflation and peoples savings become worth jack shit
>everyone in debt
>economy slows down
>only thing moving is the housing bubble
>banks burning but "saved" by the government

High interest rates
>loans more expensive, prices on housing drops, debt decreases, savings matter
>people dare buy stuff they don't really need
>can afford a home and even pay back the loan
>strong dollar
>economy grows

Two can play this game

Hi Yellen

>people dare buy stuff they don't need

Are you saying that people will have more money during a high interest rate environment?

Quality thread, btw. Good going op.

this is misinfo

>he thinks interest rates are the policy tool we need - this time it will work, for sure!

could you elaborate on your High interest rate points

People who are highly geared without cash reserves to service the loan either take a loss or go broke.
On a large scale, lots of mortgagee sales can effect housing to such a degree the LVR gets shifted meaning the home owner may have to top up the mortgage with a cash payment in a short amount of time or risk foreclosure.

the opposite of what textbook teaches you.
but this is what happens

i would say yes. less debt = more money.
and saving will be encouraged

since nobody here mentioned its all relative to the natural rate of interest in the economy ill assume u are all retards

except there is no significant inflation today

everything else I fully agree kek, what irony.

Stinulative monetary policy, is by definition, stimulative.

>What happens when interest rates rise?
>its all relative to the natural rate of interest in the economy

That's not really a definitive answer.

The natural rate of interest is zero in our monetary system.

probably cause there isnt a definitive answer?

Stock market goes up