There are some views explaining unbalanced growth, but the impact of interest rates on the structure of the economy has still been poorly investigated. This paper assesses the impact of interest rates on the productive structure of the economy. It is argued that as interest rates are fixed,...

The mainstream economic theory argues that savings positively affect economic growth. Keynes, on the contrary, claims that an increase in savings lowers economic growth, as reduced consumption negatively affects investment. A number of studies also argue that due to the adjustment costs and...

According to mainstream economic theory, deflation is evil, and monetary policy should provide a certain level of inflation as a buffer against the risks of deflation. However, there are some studies that argue that deflation is good for the economy and economic growth may occur alongside low...