Unless you’ve been in a submarine, blocked off from worldly communication, it would be pretty fair to assume you’ve heard a lot about central banks and interest rates in the media. Particularly over the past couple of years.
We’re going through a period that is arguably quite unprecedented, and the role of the central bank is coming into question – do they have the influence they once had?
In this episode, we break down central banks and interest rates, to help you piece the economy together. We answer the following questions:
- What are central banks?
- Why are we talking about them now?
- What are the goals of a central bank?
- What is their role in the economy?
- How do they achieve their goals?
- What are interest rates? What is QE (quantitative easing)?
- Which country has the lowest interest rate and which has the highest?
Knowing the role of central banks and interest rates will go a long way to helping you form a solid base understanding of the economy.
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