Category: Uncategorised
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When interest rates rise, younger firms tend to narrow the gap between their prices and production costs, while older firms widen it. Since the latter account for much more business activity than 30 years ago, the same interest rate decision can have a different effect on the wider economy.
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Women who run new businesses are more likely to have loan applications rejected than comparable men. This does more than hold back individual companies: when productive firms can’t obtain enough finance to invest and grow, capital ends up in the wrong places and the whole economy produces less.
