A Quote by Marek Belka

Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker. — © Marek Belka
Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker.
With interest rates artificially low, consumers reduce savings in favor of consumption, and entrepreneurs increase their rates of investment spending.
The degree of monetary policy ease should be associated with the level of real interest rates, not nominal interest rates.
If we are going to have a Fed, it should not fall into the tyranny of experts with the a fatal conceit that a few wise people can determine interest rates. Interest rates should be driven by the market, and people's time preference, and we see these boom-bust cycles.
Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.
If we increase freight rates, the goods will move through the roads and the condition of the roads will become worse.
If we were to underrun our inflation objective over a period of time that we tried to increase interest rates, I think that would be worrisome.
The key is if the economic data stays soft, maybe we don't have to worry much about interest rates anymore. Then we need to worry about earnings. What gave us a really strong move in stock prices from late May until about two weeks ago was this heightened optimism that maybe interest rates are at that high. That gave you a relief rally. Now reality is setting in - if we've seen the worst on interest rates then we've seen the best on earnings.
What's true for New York is true for most of the country: We are a long way removed from the double-digit interest rates and unemployment rates, and the soaring crime rates, of the early 1980s.
Arthur Laffer's idea, that lowering taxes could increase revenues, was logically correct. If tax rates are high enough, then people will go to such lengths to avoid them that cutting taxes can increase revenues. What he was wrong about was in thinking that income tax rates were already so high in the 1970s that cutting them would raise revenues.
The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the three-month interest rate, but on other interest rates as well.
Here's the interesting thing: the fact that QE and lowering interest rates almost to zero has worsened inequality, does not mean that raising interest rates will help reduce inequality.
Most savings rates are based on underlying interest rates.
Let's get one thing straight: No one wants Stafford loan interest rates to increase.
What we have to be careful is that if we drop interest rates where the rate of interest is lower than inflation, then savers will not put money in financial savings and move it to gold and real estate, which is bad for India.
When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward.
We believe that the Federal Reserve has to carry on with a progressive increase in interest rates as a consequence of the American economy.
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