14 min
Cantillon Effects: Consuming Folly Pt I Cantillon Effects - latest commentary
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- Business
We often talk of consumers as those 'driving the economy' or of representing its largest component. Official policy is usually aimed at stimulating as much consumption as possible, usually through forcing the interest rate lower in order to encourage borrowing.
But does the concept make any sense and does that policy do more harm than good? Part 1 of 2.
We often talk of consumers as those 'driving the economy' or of representing its largest component. Official policy is usually aimed at stimulating as much consumption as possible, usually through forcing the interest rate lower in order to encourage borrowing.
But does the concept make any sense and does that policy do more harm than good? Part 1 of 2.
14 min