Open Access Article SciPap-775
The Importance of Interest Rates Under Contemporary Conditions of World Economy Crisis Management
by Oldřich Rejnuš 1,*

1 Faculty of Business and Management, Department of Economics, Brno University of Technology, Kolejní 2906/4, Brno 61200, Czechia

* Authors to whom correspondence should be addressed.

Abstract: The paper deals with contemporary economic importance of interest rates, with special focus on methods of using as a tool of monetary regulation when solving actual problems of world economy. Firstly, results and impacts, achieved by expedient decreasing of interest rates are analyzed and mechanisms activating this method of use of this tool of monetary regulation are described. Secondly, theoretical aspects of these issues, namely the differences of actual macroeconomic policy of governments and central banks and commonly valid theoretical principles are dealt with. In conclusion, these results are synthesized and, based on final results, future development of world economy is predicted, including risk factors that will probably be influencing it forever and that will finally result in collapse with disastrous impact on the future of mankind.

Keywords: Global Economy, Financial Markets, Interest Rates, Financial Crises, Risk Factors, Public Debt, Quantitative Easing

JEL classification:  E4 - Money and Interest Rates,   G01 - Financial Crises,   G17 - Financial Forecasting and Simulation,   G18 - Government Policy and Regulation

SciPap 2015, 23(3), 775

Received: 31 August 2015 / Accepted: 17 December 2015 / Published: 21 December 2015