Paradoxically the halo effect of early interest rate convergence allowed a greater divergence in fiscal policies.
FORBES: Roubini Warns Of Euro Break Up As Greek Credit Rating Tumbles
Back in the 1970s they charged foreigners a fee for having a bank account, in effect imposing a negative interest rate.
So far, the effect of the new interest-rate regime has not been great, but it will bite when old loans come due and are rolled over at terms more favorable to borrowers.
Third, there is an exchange-rate effect: a rise in interest rates pushes up the currency and so squeezes exports.
What's the ripple effect from record mortgage loan defaults and a lowered interest rate?
Another reason to suspect that the Fed is more than a bit player is that American interest-rate decisions have a disproportionate effect on global monetary conditions.
In addition to her legislation, Gillibrand said Sunday she would push to stop interest rate hikes set to go into effect in July for federal Stafford loans.
Since interest-rate reductions are usually reckoned to start having an effect after about six to nine months, the Fed's cuts earlier this year should start to work their way through before too long.
The session will also cover the FSA's action against RBS over interest rate fixing - which could result in penalties falling, in effect, on the taxpayer.
But because market intermediaries will also be taxed, even a 0.1% tax rate will translate, via a "cascade effect, " into higher interest rates on sovereign bonds.
Mr Coogan warned that the bank's efforts had yet to have much effect on the London Inter-Bank Offered Rate (Libor), the main interest rate governing the cost of lending between banks.
Analysts said two previous interest rate rises earlier in the year were already showing signs of having an effect on the economy.
Continued interest-rate hikes and slowing home buying should have, at most, a marginal effect on 2006 because the economy's underlying strength likely won't flag.
And the cost to the supplier of immediate cash payment by the bank, in respect of the implicit interest rate or discount on the bill, ought to be tiny - because the bank is in effect lending to the safe big company, which ultimately honours the bill, not to the riskier supplier.
But many families can wring even more tax savings from a 529 by investing it all along in taxable bonds--whose interest would otherwise be taxed at a federal rate of up to 40% (including the effect of an itemized deduction clawback)--and holding index funds or individual stocks in their taxable accounts, says Yale School of Management professor Matthew Spiegel.
应用推荐