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Brian Albrecht: Optimal interest rate cap is around 30 percent when lenders have market power
Brian Albrecht highlights insights from Joaquín Saldain regarding the impact of interest rate caps when lenders possess market power.
According to Albrecht, Saldain's analysis suggests that under calibrated conditions, the optimal cap for interest rates is approximately 30 percent.
Albrecht has previously noted that market power estimates often group in unexplained features left out of economic models, according to a prior analysis. In a separate post, he challenged the FTC's directive for Visa to oversee bank client account-closure actions it cannot control, as reported earlier. These reports reflect Albrecht's ongoing focus on practical implications of regulatory policies.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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