Several studies show that the expansionary effect of lower interest rates has often outweighed the contractionary effect of lower government spending.
Paradoxically the halo effect of early interest rate convergence allowed a greater divergence in fiscal policies.
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Morgan isn't immune to the struggle that impacts most U.S. banks, particularly the effect of low interest rates on profits from lending and investing.
The Fed talks about the stimulative effect of lower interest rates created by their purchases, but there is apparently no mention that higher inflation, when it occurs, would increase interest rates.
Perhaps deliberately, perhaps as a side effect of the high interest rates required to extinguish inflation.
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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.
Allowing for the effect of transferring the interest income that the Bank of England has earned as a result of quantitative easing, that measure of borrowing has actually fallen for the remaining years of the Parliament.
The effect of the downgrade on interest rates and foreign investments in Treasuries is also uncertain as of yet.
This will also have the effect of driving long term interest rates even higher in the search for buyers.
Reports blamed the effect of gas prices and interest rates on consumer spending.
Yet that is the effect of the home mortgage interest deduction, because the same tax deduction is more valuable the higher your tax bracket is.
Stack says that many analyses of the market, like Gross', fail to account for the effect of short-term interest rates just above 1%, which he believes make current valuations tenable.
In his opinion once it was determined that activity was, in fact, educational as defined by the IRS and did not have the effect of benefiting a private interest, it did not violate the private benefit doctrine as we described.
The converts benefited from declining interest rates, which had the effect of raising their value in addition to the interest or dividend the converts paid.
These higher yields equate to lower bond prices which, in effect, wipe out years of interest, considering there is an inverse relationship between price and yield.
Perhaps inevitably, one issue being debated is whether the means that Islamic finance uses to avoid the receipt of interest are just a sham in which interest is in effect paid, but called by another name.
The effect on the reversal of U.S. interest rates and credit spreads could be devastating.
Estimates of the effect of Asian reserve accumulation on America's interest rates differ wildly.
And raising interest rates might have the effect of slowing the economy further.
The interest deduction has the perverse effect of rewarding dirty balance sheets.
The cumulative effect of this is very low short-term interest rates.
Sometime later, as the gap narrows between what the Japanese economy is capable of producing and what it is actually producing, the bank wants to end its policy of keeping interest rates, in effect, at zero.
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This has the perverse effect of giving higher real (inflation-adjusted) interest rates to slow-growing, low-inflation countries, and lower real rates to booming economies with rapid inflation precisely the opposite of what a sound monetary authority would prescribe.
The Australian maneuver had the effect of converting a mostly useless capital loss deduction into a valuable interest deduction.
The Bank has said that it was waiting to see the effect of bonus payments on wages before making a decision to raise interest rates further.
If the governing party has a majority on the monetary council, it could in effect set interest rates, which would place Hungary in breach of its EU obligations.
There is an effect upon interest rates, but it is negligible given the size of the economy.
As well as finding that Deutsche Bank did not adequately explain the transaction, the court said there was a conflict of interest as it was both advising and, in effect, betting against its client.
They will learn to be a leader who influences without controlling, who defends the culture and values of the commons first and foremost, and who collaborates with others to effect change but only when that change is in the best interest of the collective.
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