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Week 2 Discussion 1 Would you agree or disagree with David Malpass’s suggestions? Why or why not? I agree with David Malpass to raise the interest rates. At the time of the article the interest rates were near zero which does not help the banking institu

Week 2 Discussion 1

Would you agree or disagree with David Malpass’s suggestions? Why or why not?

I agree with David Malpass to raise the interest rates.  At the time of the article the interest rates were near zero which does not help the banking institutions and in turn do not have the funds for the government.  Raising the interest rate will increase prices and help economy.  Although people tend to borrow less as interest rates rise this also helps the federal fund rates which are the rates that are charged between banks that borrow from one another.

Now the debt limit I see where Malpass is coming from and I would agree.

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