It is a time-honored adage that monetary policy affects the economy with long and variable lags. Well, that time is up, if the tumult caused by the failure of a few regional banks is any indication. It’s important to remember that central bank rate changes impact the economy both directly and indirectly. The direct impact is obvious: Higher or lower interest rates cause immediate increases or decreases in borrowing costs to households and businesses, leading to corresponding changes in spending and investment. Continue reading this month's Investment Chronicle