Interest Rates, Inflation, and the Economic Cycle - Deepstash

Interest Rates, Inflation, and the Economic Cycle

One of the forces with the most influence on the economy is the Federal Reserve Board’s influence on interest rates. Some types of interest rates can affect consumer borrowing which affects consumer spending. Because the Federal Reserve Board gets so much media attention, its actions have a psychological effect, influencing impressions of the country’s economic health.

As it turns out, consumer spending is influenced by interest rates. We can see that interest rates do in fact lead to spending. Increases in Fed rates presage economic turndowns and vice versa.

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Ahead of the Curve will arm you with the knowledge you need to deflect useless theories and reject hype. Economic analysis can be a do-it-yourself activity. Instead of tracking absolute increases and declines, the methods in this book look at changes in growth to make economic forecasts. The tools are based entirely on examining historical data for recurring patterns.

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