So we all know that price controls are a disaster, what about interest rate controls?
Please lets not make this discussion about politics. Here I would like to discuss economics.
What sort of market distortions come about from implementing interest rate controls?
Unnatural increased assets prices if kept too low and undue bankruptcies if kept too high.
Hard to afford anything or lose your job.
ECB -> You prefer a job to having savings.
I think nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe explained it best in The Price of Tomorrow. Interest rate controls distort capital markets and result in misallocation of resources. The result? Stonks and home prices inflate, increasing wealth inequality, resulting in lower quality of life for the people without the assets.
