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Interest rates

Marketplace

Confused about the theory of how interest rates can affect economic growth? Senior Editor Paddy Hirsch is here with a handy analogy.

Dec 15, 2009
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grzeis lipski's picture
grzeis lipski - Jan 3, 2010

Maybe (please) Mr. Hirsch can tackle the explanation of bond yield spreads being a predictor of future inflation?

George Banks's picture
George Banks - Dec 29, 2009

Always enjoy your videos! I would like to see a video on the commodity markets, and how the current economic crisis has affected them.

Greg Crannell's picture
Greg Crannell - Dec 23, 2009

After linknig your exmaple to the current situation, you should've used it was a segue to explain what the liquidity trap is and the danger of deflation.

It's a shame you didn't.

Greg S's picture
Greg S - Dec 19, 2009

I enjoy Mr. Hirsch's video clips but found this one slightly over simplified. Mr. Hirsch only described interest rates in regards to personal savings. What about interest rates in regards to the availability of money. When the federal funds rate is low, it is easy for banks to lend to each other. This then results in a free flow of money. With a free flow of money people are able to get loans and spend more freely. When the fed funds rate is raised, money is "harder" to get, resulting in less flow of money and therefore less spending.

Patrick Camburn's picture
Patrick Camburn - Dec 19, 2009

Dec 19th
I have enjoyed all of Mr. Hirsch's videos. I was wondering if MPR could either collect them on DVD, or even just the drawings and written version of these features in paperback. - would make a good suppplementary textbook for many economic courses

David Toth's picture
David Toth - Dec 16, 2009

The Twitter link is broken on this page:
http://marketplace.publicradio.org/display/web/2009/12/15/whiteboard-int...

The link it references:
https://twitter.com/paaddyh

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