This week the Federal Reserve is set to decide whether or not to raise interest rates. If it doesn't happen in September, the likelihood remains high that they will rise in December or early 2016. Following the previous week's podcast on the potential effects of an interest rate increase, this episode continues with a discussion of the effects on emerging markets, domestic markets in the U.S. and other advanced economies, and the real reasons why central bankers want to raise rates: to induce 'market discipline' and 'creative destruction'; to take the pressure off central banks to spur growth and put the pressure on governments to implement structural reforms. When rates increase, crisis is likely to result, and then governments will be forced to take actions which advance the evolution of the global market economy.
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