|Author (Person)||Holtfrerich, Carl-Ludwig|
|Series Details||Vol.53, No.3, May 2018, p.164-169|
|Publication Date||May 2018|
|ISSN||0020-5346 (print) | 1613-964X (online)|
|Content Type||Journal | Series | Blog|
Conventional wisdom says that central banks determine interest rate levels. After all, monetary policy set by central banks directly influences money market conditions. But these conditions are also shaped by other actors such as government, manufacturing businesses, commercial banks and non-bank financial institutions, as well as by monetary developments abroad. In this paper, it is argued that market forces, such as a global saving glut, play a more important role in setting interest rates than central banks.
|Subject Categories||Economic and Financial Affairs, Politics and International Relations|
|Countries / Regions||Europe|