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Article: Neither a borrower nor a lender be. (interest rates)
- Article from:
- The Economist (US)
- Article date:
- August 13, 1988
CopyrightCOPYRIGHT 1988 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In both America and Britain domestic worries have temporarily replaced exchange-rate ones in the setting of interest rates. How effective are interest rates at checking growth in-domestic demand?
MR NIGEL LAWSON marred his achievement this week in becoming Britain's longest-serving postwar chancellor of the exchequer. He raised interest rates for the seventh time in three months. A day later the Fed raised America's discount rate by half a percentage point. There was a common cause: on both sides of the Atlantic there are worrying portents of overheating and inflation.
With America's fiscal policy off-limits until after the presidential election, and the ...