To understand the economy, you have to understand human nature.

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Welcome to the David McWilliams podcast.

The podcast, you know, that aims to make economics more comprehensible, a little bit more enjoyable and hopefully a little bit more applicable to everyone's

lives. This week, we've got a bonus episode for you, brought to you by Dun Deal Motors.

Now, they've asked us to give you the lowdown on price fluctuations, on interest rates,

and market value perceptions, but obviously on what is going on in the economy. And what happens

in the economy when

interest rates are low and then they change because last week, John, what you'll have noticed

is the ECB raised interest rates by half a percent of point. Yes, yes. Yes, yes again.

We've spoken about the fact that the central bankers are now going to probably clobber

people because they're trying to pretend that they're on top of the

inflation game and how that will manifest itself as interest rates rising. So the backdrop for

this particular podcast is look at what's happening. Bank of England increased. Yep. ECB increased,

Fed increased. We are in an interest rate tightening cycle, one of which

that I think will be further amplified by the fact that central bankers having not panicked

during the pandemic are panicking now.

Right.

Okay.

Well, this is going to be interesting.

But before we get into that, let's talk about

value and what exactly value is. I know it's kind of subjective. Yeah, I'll tell you about

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