“[Australian Reserve Bank] Governor MacFarlane said recently when Paul Volcker broke the back of American inflation it's regarded as the policy triumph of the Western world. When I broke the back of Australian inflation they say, "Oh, you're the fellow that put the interest rates up." Am I not the same fellow that gave them the 15 years of good growth and high wealth that came from it?” WorldYearsSaidGrowthInterestWealthPolicyFellowsWesternRateBrokeTriumphGovernorsReservesInflationAustralianWestern WorldInterest Rate Author:Paul Keating
“Where countries have been able to carry through on their reform commitments - as in Korea, Thailand and the Philippines - results are starting to come in the form of lower interest rates, new investment and increased growth.” Has BeensCountryAbleFormGrowthInterestResultsCommitmentInvestmentRateStartingReformKoreaPhilippinesInterest RateThailand Author:Lawrence Summers
“Central banks have gotten out of the central banking business and into the central planning business, meaning that they are devoted to raising up-if they can-economic growth and employment through the dubious means of suppressing interest rates and printing money. The nice thing about gold is that you can't print it.” IfsMeanGrowthInterestMoneyNiceEconomicGoldRatePlanningEmploymentPrintDevotedBankingEconomic GrowthPrintingNice ThingsInterest RateCentral BanksDubiousSuppressingCentral BankingCentral PlanningPrinting Money Author:James Grant
“The Fed should make a clear commitment to stable money to reduce the swings in interest rates and inflation. Instead, it champions and flaunts unstable money. This encourages momentum trading and the growth of derivatives. Meanwhile, layers of financial regulation make Washington bigger and more powerful but dont fix the underlying problems.” ShouldProblemGrowthInterestPowerfulClearCommitmentBiggerRateFinancialChampionFedsStableSwingsRegulationLayersTradingInflationMomentumUnstableInterest RateDerivativesFinancial Regulation Author:David Malpass
“Our approach is to reject the old vicious circle of the '80s-rising debt, higher long-term interest rates, higher debt repayment costs, lower growth, higher unemployment, then enforced cuts in public spending. That was the old boom and bust.” LongGrowthTermInterestCuttingHigherCostApproachRateDebtSpendingCirclesLong TermRisingRejectsUnemployment80sViciousInterest RateVicious CirclesRepayment Author:Gordon Brown
“We need economic growth in Europe and we need to find a solution for the excessive interest rates that are making it difficult for many countries to get their own debt under control.” NeedsCountryDifficultGrowthInterestEconomicSolutionsEuropeRateDebtEconomic GrowthInterest Rate Author:Martin Schulz
“The yen is trading where it's trading because people are guessing about people's future interest rates, dollar and yen and about the future growth potential of the economies. And, if this policy works, then the yen will probably strengthen.” PeopleIfsGrowthInterestEconomyPolicyDollarsRateTradingGuessingInterest RateFuture Growth Author:Jamie Dimon
“Increases in interest rates normally worsen inequality, at least partly by reducing employment and wage growth.” GrowthInterestIncreaseRateEmploymentInequalityReducingInterest Rate Author:Gerald Epstein
“There are times when a market such as housing, transportation or the stock or mortgage market keep rising and people with capital want to join in this growth. Soon the markets become overheated, partly because of the abundance of investment money and speculation. This is when the government should raise interest rates and increase the cost of borrowed money. Governments are shy about doing this because it could cause the very recession. Yet this is the best time to do this so that the inevitable recession never reaches the magnitude of the recent Great Recession.” PeopleWantShouldGovernmentCausesGrowthInterestCostIncreaseRaisesInvestmentRateInevitableRisingAbundanceShySpeculationHousingMortgageTransportationBorrowedMagnitudeRecessionsBest TimesInterest RateBorrowed MoneyGreat Recession Author:Philip Kotler
“In the U.S., you couldn't have job creation with interest rates of 30 or 40 percent. They had a philosophy that said job creation was automatic. I wish it were true. Just a short while after hearing, from the same preachers, sermons about how globalization and opening up capital markets would bring them unprecedented growth, workers were asked to listen to sermons about "bearing pain." Wages began falling 20 to 30 percent, and unemployment went up by a factor of two, three, four, or ten.” PhilosophyPainFallWishGrowthInterestCreationRatePreacherGlobalizationInterest Rate Author:Joseph Stiglitz
“The crisis and recession have led to very low interest rates, it is true, but these events have also destroyed jobs, hamstrung economic growth and led to sharp declines in the values of many homes and businesses.” HomeJobsValuesGrowthInterestEconomicEventsLowsCrisisRateDestroyedDeclineEconomic GrowthRecessionsInterest RateMany Homes Author:Ben Bernanke
“The difficulty for Mr. Obama will be when the public sees where his decisions lead - higher inflation, higher interest rates, higher taxes, sluggish growth, and a jobless recovery.” GrowthInterestDecisionHigherTaxesDifficultyRateRecoveryUsaJoblessInflationInterest RateSluggish Author:Karl Rove