P/E/22. How have interest rates changed over the last thirty years? What affects have these had on the economy and why?

Conclusion As a general sum up of all these affects, if you increase the interest rates, then you slow down the economy. If you decrease the interest rates you speed up the economy. This power can be use to control the affects of the boom bust cycle in both the economy and in separate industries, e.g. housing. It can also affect inflation and can be used to keep inflation in check. Changes in interest rates take time to affect the economy, as they change demand and eventually inflation over a period of time. So interest rates have to be changed with an eye to the future and the level of inflation in a years time.