Lowering interest rates too quickly can lead to several potential consequences. It can stimulate the economy too much, leading to an overheated economy. This can result in inflation, where the prices of goods and services increase. It can also lead to asset bubbles, where the prices of assets like real estate and stocks increase rapidly and then crash. Additionally, it can encourage excessive borrowing and risk-taking, which can lead to financial instability.
Economics can be intimidating to the person who is not well-versed in business and mathematics. This...
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