Are low interest rates increasing inequality? No, says the world's central bank
Phillip Lowe, the governor of the Reserve Bank of Australia, gets many letters and emails from retirees complaining they can’t live on the interest from their savings when interest rates are so low. “I read these letters, many of them are very heartfelt and I feel very bad for the people who are in this situation,” he told the House of Representatives standing committee on economics in February. “So I try and say we understand. The second thing I do is explain why we’re in this situation.” Low interest rates have other critics. The idea that central banks have increased wealth i...
Source: theconversation.com