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Do Central Bank Interest Rate Cuts Strengthen the Economy?

Summary by Mises Institute
According to Keynesian “economics,” central bank interest rate cuts will make the economy stronger—unless the economy is in a “liquidity trap.” The truth is that these kinds of monetary tricks actually weaken the economy.

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Do Central Bank Interest Rate Cuts Strengthen the Economy?

According to Keynesian “economics,” central bank interest rate cuts will make the economy stronger—unless the economy is in a “liquidity trap.” The truth is that these kinds of monetary tricks actually weaken the economy.

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Mises Institute broke the news in on Monday, April 14, 2025.
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