4.5 The Role of Interest Rates

In this section

• 4.5.1 Interest Rate Mechanisms
  An in-depth exploration of how interest rates function, influence economic activity, and impact the allocation of capital, highlighting the distinction between nominal and real interest rates.
• 4.5.2 Monetary Policy and Interest Rates
  Explore the intricate relationship between monetary policy and interest rates, focusing on the central bank's tools and objectives.