Are there any good economists here?
Conventional wisdom says that when money becomes tight then interest rates rise as there is a shortage of money to lend. But here we are in a time when banks won't lend to anyone but interest rates are relatively low. There is all this demand to borrow money out there so why haven't the rates increased?
Conventional wisdom says that when money becomes tight then interest rates rise as there is a shortage of money to lend. But here we are in a time when banks won't lend to anyone but interest rates are relatively low. There is all this demand to borrow money out there so why haven't the rates increased?