High interest rates are good for a country?! That needs some explaining.
Any type of money loaned out with interest (even a low %) by a private federal bank is bad. Who gains that money and who loses it? Was it even earned?
High Russian interest rates suppress domestic business borrowing and a self-reliance investment/credit loop. Russian companies are then forced to borrow from outside of Russia since the interest rates are way lower. But that's being blocked by foreign countries. Heck, the money Russia borrows from outside Russia is Russia's own money being sent overseas, too. Ridiculous.
High interest rates don't lower inflation... or keep it lower. That's a fallacy. Can't trust official gov't inflation rates, but look at the low interest rates and low inflation rates of western countries. Russia's higher inflation is due mostly to importing too many high priced foreign things. The ruble weakening makes those prices even higher. That's why Russia's import substitution is so important. But the problem is with high domestic interest rate, companies can't profitably borrow to expand domestic production.
At the personal level, people borrowing to buy a house, a car, or using credit cards would obviously benefit from lower interest rates. The only people who benefit from higher interest rates are few... mostly those who pretty much have a monopoly on lending. A rent-seeking dominated economy is a dying economy. That's what we have in the western world.
Any type of money loaned out with interest (even a low %) by a private federal bank is bad. Who gains that money and who loses it? Was it even earned?
High Russian interest rates suppress domestic business borrowing and a self-reliance investment/credit loop. Russian companies are then forced to borrow from outside of Russia since the interest rates are way lower. But that's being blocked by foreign countries. Heck, the money Russia borrows from outside Russia is Russia's own money being sent overseas, too. Ridiculous.
High interest rates don't lower inflation... or keep it lower. That's a fallacy. Can't trust official gov't inflation rates, but look at the low interest rates and low inflation rates of western countries. Russia's higher inflation is due mostly to importing too many high priced foreign things. The ruble weakening makes those prices even higher. That's why Russia's import substitution is so important. But the problem is with high domestic interest rate, companies can't profitably borrow to expand domestic production.
At the personal level, people borrowing to buy a house, a car, or using credit cards would obviously benefit from lower interest rates. The only people who benefit from higher interest rates are few... mostly those who pretty much have a monopoly on lending. A rent-seeking dominated economy is a dying economy. That's what we have in the western world.