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  • zifnab25 [he/him, any]
    ·
    3 years ago

    Both of these things can be explained by low unemployment as a result of low interest rates

    We had low interests rates as far back as 2008. We're only just now seeing labor actions 14 years later.

    lower unemployment increases the bargening position of workers

    The low unemployment isn't just due to lending. There's a serious shortage of physical bodies.

    • aqwxcvbnji [none/use name]
      ·
      3 years ago

      We had low interests rates as far back as 2008.

      But the fed and the ECB have only expanded their monetary stimules since then. You can see on their balance which I linked, that they've kept on buying bonds since then, which decreases real interest rates for companies, much more than what's possible trought just lowering the federal funds rate or EONIA (which is what's usually meant when people are refering to low interest rates).