Description
Some
individuals suggest that
an increase in wages can be associated with an increase in
interest rates.
Apparently, this idea shows the tendency that the financial
institutions would be committed to take part in the efforts to
increase wages. Others argue that there is no any historical
evidence that the financial institutions would be worried
about wage increase. They also raise some important questions such
as: How on earth would an interest rate to a proportion of above
4% would be allowed to exit in the first place? Who is the
major influential entity to propagate the belief that
any interest rate
below 4% would be considered historically low, as if banks are created to amass income
more than anybody? Where would the logic rest? The Fed is now
determining interest rates in a fashion that facilitate conditions
for the economy to take its proper course. So, upon proper
recovery, would it mean the financial institutions could have the
legitimacy to adjust the rate according to the public interest?
How would you address these questions, which have been forwarded
to all members of the course. 200 words. No title page needed.
