The Economist recently opined that interest rates don't affect investment. This claim is based on an empirical study that contradicts what we already know: that lower prices lead to more demand. In the end, the problem lies with the researches who fail to account for the behavior of central bankers, writes Peter St. Onge.
This audio Mises Daily is narrated by Robert Hale.
Peter St. Onge is an assistant professor at Taiwan's Fengjia University College of Business. He blogs at Profits of Chaos.
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