Eli5: why are interest rates now considered worse than higher interest rates of decades ago?

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I am surrounded by boomers saying this that in their day interest rates were at 15% and we have it easy! I’m also surrounded by the younger generations saying this is ‘not the same thing’

Explain to me the reasoning…

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Anonymous 0 Comments

The answer lies in the hyperbolic curve. Changes closer to the lower bound are going to be a lot more significant to valuations than changes at a higher point.

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