By Greg Kozol, News-Press NOW, March 14, 2020
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“This effect on Wall Street is a symptom of a whole bunch of other things,” said Dr. Kara Grant, a professor of economics at Missouri Western State University. “When you have a lot of supply chain disruptions, that could cause inflation and unemployment.”
A steep drop in gas prices — a result of a price war between Russia and Saudi Arabia — puts money into consumers’ pockets and could act as a stimulant to counter the economic impact of supply shocks, Grant said. The benefit of lower interest rates is less clear, she said, if businesses are hit so hard by supply disruptions that they don’t use reduced borrowing cost to boost investment.
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