High Interest Rates and Well-being: Evidence from 2008 Crisis

The research analyses the reasons of the global crisis of 2008. The purpose of this research is to comprehend the effect of the interest rate on the global crisis. The research contains six factors driving the global crisis of 2008, determining the consequences and successes that emerged from the global crisis. It is shown that the global crisis affected a number of industries in the world of business, while in others industries it had no impact. The method used for conducting research is quantitative, in which data were acquired from FED and were processed by the usage if a statistical software SPSS. The research hypothesizes that, the rise in profit margins in banking sector is negatively related with the economic expansion. The results of the study show both hypotheses that claim that there is a negative relation between interest rates and economic well-being are supported