during economic crisis like what happened in Greece or at Korea 1997, would their national bank raise or lower the interest rate? and would that decision what so ever increase the gap between rich and poor?
if there is high interest rate, banks will get more moeny because people will want to save and companies would be hurt because they have to pay more interest. so, that will lower the gap between rich and poor(economic inequality)?
if there is low interest rate, people will borrow money from banks and also the companies however, i am talking about during the economic crisis, which means that the national bank is in a lot of debt and do not have the enough money to lend people which means that the bank will increase the interest rate during economic crisis.
if economic crisis would happen, the bank will raise the interest rate and that will result what?
I think economic crisis increases the gap between rich and poor but I cant figure how it does because, as I wrote in the above, my guess ends up with lowering tha gap not increasing...
Please correct me if I am wrong, I am still learning.
... and the ones that won't