our tour guide ?
my sister agora paine
interest effects :
1) monetary policy
lower interest rates => more borrowing
for housing
consumer durables
i note this channel produced the lot bubble
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asset price effects
2) exchange rate effect on exports
3) Q effects
4) wealth effects => equity prices
silk hat socialism
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credit efects
bank lending channels
5) more deposits => more loans
umh credit standards ?
as in default risk
balance sheet
6) increasing asset values
useable as collateral
see channel 1
7)cash flow
lower borrowing costs higher cash flow
our corporations are already cash sumps
just how many firms
are " at that sacred extensive margin"
ready to tip into big time spending ?
8) unanticipated price change effect
cart before the horse
got to get spending going here first eh pal?
9) household liquidity effects
portfolio effect...wealth effect on spending
financial duress relief
yup silk hat hand outs again
unless portfolios seriously impact lots more widows and orphans
then i imagine
