The style is easy but not everything is clear to me. Would you enlighten a fellow DiEMer? ;-) I understand the interest rate should go up if firms start borrowing more. But if money is handed directly to corporations through the stimulus, they don't need to borrow, at least not in the beginning. Am I getting something wrong? And then if the recovery stalls because households don't see their income increase fast enough, then the interest rate doesn't go up. Or is it a purely financial phenomenon where markets expect a recovery and so immediately start "pricing" assets accordingly, driving interest rates up, thereby hindering the recovery according to the mechanism you describe? In this case can't central banks stop that? Carpe DiEM!