Is higher interest rate a good thing

Discussion in 'Economics' started by a529612, Jun 8, 2006.

  1. You get foreign money inflow into US assets. Can this be a blessing in disguise?
  2. Yes, if it's the result of aggressive borrowing for expanding productive capacity. If your "business" has big margins, you can continue borrowing and still be very profitable.
  3. sarah0106


    high interest rate can stop inflationary pressure but also increase the cost of borrowing..