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These brief essays delve into the economic issues of the day for a generally informed readership.

2010, No. 3 (Posted 2010-02-02)

Are Low Interest Rates Good for Consumers?

by William T. Gavin

Although banks’ cost of funds has dropped dramatically with the federal funds rate target, households’ cost of funds has remained high, especially if we look at their cost of borrowing relative to their rate of return on saving.

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