Saturday, 31 January 2009

Winner and losers

Matt Nolan over at TVHE points us to these two short articles in the The Dominion Post. They make the point that are winners and losers from interest rate cuts. Interest rates are just prices, and like all prices, high ones are good for sellers and bad for buyers. Low prices, on the other hand, are good for buyers and bad for sellers.

Just ask a dairy farmer.

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