Despite ultra-easy monetary policy in US, Eurozone and Japan, lending interest rate remains higher than expected profitability. However minimal lending interest rate in advanced economies diminishes the Central Banks' ability to stimulate economic growth. Paper argues that high interest rate is...

Paper provides analysis of the impact of interest rates on manufacturing's share of GDP across countries and argues that 1) interest rates differently affects tradable and non-tradable sectors, 2) manufacturing is more sensitive to interest rate fluctuations than the non-tradable sectors, and 3)...

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,...