The impact of monetary policy on interest rates can influence investment decisions from "summary" of A Monetary History of the United States, 1867-1960 by Milton Friedman,Anna Jacobson Schwartz
Monetary policy plays a crucial role in shaping interest rates, which in turn can have a significant impact on investment decisions. When the central bank adjusts the money supply through various policy tools, such as open market operations or changes in the discount rate, it can influence the cost of borrowing for businesses and individuals. Lowering interest rates can stimulate investment by making it cheaper for firms to finance new projects or expand their operations. This can lead to increased capital spending, job creation, and economic growth. On the other hand, raising interest rates can have the opposite effect, as higher borrowing costs may discourage businesses from investing in n...
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