Rate hikes affect manufacturing economies more – Fed study
Authors find similar effects across eurozone and in US at county level
High interest rates depress activity more in manufacturing-based economies than in those reliant on services, according to research from the Federal Reserve Board.
The study, published on November 12, finds this to be the case when comparing different countries in the eurozone. The authors, Ruslana Datsenko and Johannes Fleck, discover the same effects in the US at the county level.
The study finds that Germany, the eurozone’s largest economy, performed comparatively well during Covid but has been
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