Interest rate is the transfer of the right to the use of currency prices. Like any other commodity prices, the right to the use of dominant currency prices by market supply and demand, monetary supply, interest rates fell, supply less than demand, rising interest rates. Therefore, the method is to reduce interest rates, increase the money supply. Increasing the quantity of money, will lead to rising prices, inflation. And sustained price rise, will improve investor expectations of future earnings, which will expand investment; for consumers, more cash holdings, the devaluation of the loss is bigger, weakening the currency holding their preferences, increase consumption. Both of which will promote economic growth.
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