Is economic growth with high interest rates sustainable or is it a passing illusion?

Abstract

For decades, traditional economic theory has held that when interest rates are kept at high levels for a long time, economic activity is likely to slow. So will production and employment and will end up causing an economic recession (Abel and Bernanke, 2004). However, from 2021 to 2023 no such contraction has been observed, despite the fact that interest rates have remained high.

DOI: https://doi.org/10.5281/zenodo.10475508

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