Can Low Interest Rates Drive Inequality?

Professor Paymon Khorrami said years of declining interest rates may have led to higher investment in education by the wealthy, increased inequality, and worse economic outcomes

We are living through a half-century trend of declining interest rates. Despite headlines of high rates dominating the news since the Fed pivoted to a more restrictive policy in 2022, “real” interest rates — adjusted to inflation — have gone down on average since at least the 1980s. This should be good news, as it's almost… read more