Are High Interest Rates as Bad as Advertised?

Everyone knows lower interest rates are supposed to stimulate economic growth. If that is the case, the inverse must also be true. However, is that really the truth? After all, the Japanese have had manufactured low interest rates for almost three decades, and where has the growth been? The same could be said for the Europeans over the last decade or so. Shoot, even the American economy seemed to be weaker than it should have been with artificially low rates. This begs the counterintuitive question: are high interest rates really as bad as advertised? In this week’s Trading Perspectives, Sam and John discuss the impact permanently higher interest rates might have on the economy. It might not be as bad as feared.