An expectation that interest rates will be high sometime in the next decade should mean high interest rates on long term bonds today.

Do Low Interest Rates Ensure High Asset Prices?

Mortgages are available at outrageously high interest rates.

In this case, the price of loanable funds is the real interest rate. An expectation that interest rates will be high sometime in the next decade should mean high interest rates on long term bonds today.

All were high in importance, if not always in popular interest.

The high interest rate margins set by the PBOC provide additional support.

The answer lies in their view of the root cause of continued high unemployment excessively high real interest rates.

Similarly, a potential downside to quantitative easing is that low interest rates send capital to higher growth, high interest rate countries.

Faced with high inflation, Thatcher backed a monetarist approach that supported high interest rates and succeeded in sharply reducing inflation.

Sterilized foreign exchange intervention keeps domestic interest rates high and feeds the inflows.

Corroborating statistical evidence shows that high deficits and debt increase long run interest rates.

Such circumstances include, first, a high debt GDP ratio, with rising interest rates impeding growth.

The sixteenth century Habsburgs borrowed at very high interest rates from Florentine, Genovese, and Augsburg merchants.

But, even after disinflation in the mid 1980 s, long term interest rates remained relatively high.

Finally, finance has long had an interest in stable monopolies and oligopolies with high profit margins, while the public has an interest in competitive markets with low margins.

So monetary policy has since remained tight, with high interest rates contributing to slowing investment and consumption.

Senegalese Prime Minister Abdoul Mbaye has cited high interest rates as a major impediment to GDP growth.

To respond to inflation by increasing interest rates would simply compound the difficulties of high prices with high unemployment and an even less competitive exchange rate.

Those high interest rates strangle businesses and households, causing further economic collapse and making debt ever more unsustainable.

World monetary conditions seem to point to a protracted period of high liquidity and low international interest rates.

Hedge funds have borrowed hundreds of billions of dollars at ultra low interest rate in Japan, and invested the proceeds in countries like Brazil and Turkey, where interest rates are high.

For decades, developing countries dreamed of a nirvana of sky high commodity prices and rock bottom international interest rates.

Their cash balances are extremely high, interest payments on debt are low, and principal obligations have been termed out.

Other contributory factors were high domestic liquidity and low, albeit gently rising, interest rates, which enhanced domestic demand expansion.

The second oil shock and high international interest rates, coupled with a lack of foreign investment, led to significant internal and external imbalances and high levels of foreign debt.

But if nominal interest rates stay positive, while inflation is negative, then real interest rates may become too high for an economy in recession, causing recession to become more severe and prolonged.

Japan s ability to sustain high fiscal deficits, low interest rates, and net capital exports has been possible because of its high private saving rate, which has kept national saving positive.

Turnout was relatively high, at 57 of registered, particularly given that the OSCE had intoned that public interest does not seem to be high other experts wrote of voter fatigue.

One oft heard justification for high asset prices is that real (inflation adjusted) long term interest rates are very low.

The combination of loose fiscal policy and tight monetary policy will mean high interest rates, sluggish investment, and slow growth.

Ordinarily, rapid global growth translates into high long term interest rates that is, unless, deep down, people have become nervous.

A fundamental principle of financial theory diversification or risk spreading implies that interest in the new contracts will be high.

Because the downturn was not caused by high interest rates, lowering them could not lift the economy out of recession.

But no one has the right to complain about the central bank s high interest rate, appreciated currency policy when fiscal policy remains too lax for interest rates to be reduced without risking price stability.

Interest rate spreads for Italy and Spain are widening again, while borrowing costs for Portugal and Greece remained high all along.

Or, if these deficits are monetized, high inflation may force up long term interest rates and again choke off economic recovery.

To combat the effect of high oil prices, consuming countries adopt expansionary economic policies, lowering interest rates and increasing government spending.

One reason that interest rate spreads in financial markets remain high is that distressed eurozone countries growth prospects look so weak.

The high cost and limited availability of fuel led to a resurgence of interest in alternatives to single occupancy vehicle travel.

In comparison to 2003, various State entities showed greater interest during the second half of 2004 regarding the High Commissioner's recommendations.

Moreover, because profits are high in Europe, likely future increases in real interest rates needed to ensure price stability easily can be financed out of profits without economic disruption. The truth of the matter is that interest rates both nominal and real are too low in Europe, not too high.

Instead, up to now at least, the government has mostly been providing (high interest) loans rather than engaging in massive equity buyouts.

First, high household debt means that if interest rates rise, as they do in a normal recovery, households will find themselves strapped.

If interest rates on US Treasury securities were high and rising rapidly as the debt grew, I would agree with this argument.

El Salvador reiterated its interest in playing an active part in the high level dialogue on international migration and development in 2006.