Episode 78: Should We Stop Setting Ultra-low Interest Rates During Recessions? (with Nicky Solis)

The theme for round 4 of this year's Debatable IV is economics! We are living in the middle of a recession because of the pandemic. One of the ways that central banks try to stimulate the economy is by setting "ultra-low" interest rates. Theoretically, low interest rates help stimulate the flow of money by encouraging lending and investment, but theory doesn't always match reality.   The motion reads: THR the policy of central banks to set ultra-low interest rates when facing severe economic downturns. Thanks so much to Nicky Solis for contributing this motion and post-debate analysis!   00:00 Introduction 1:24 Getting over your fear of econ 3:46 What inspired this motion? 4:57 What do central banks do? 7:51 What are interest rates? 11:33 How does the interest rate affect the economy? 13:16 When and why would rates be high? 15:59 Framing on gov 19:14 Are the harms inherent to ultra low rates? 24:18Will bank runs happen? 25:55 Extending on gov 28:26 Reframing on opp 32:36 Why would people follow the central bank? 35:21 Usury Laws & the Opp alternative 36:30 How do low rates help the economy? 40:20 Future matterloading 43:01 How can debaters be more interested in economics?

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