Retrieving "Macroeconomic Impact" from the archives

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1. Interest Payments

   Linked via "macroeconomic impact"

   Interest payments represent the periodic compensation made by a borrower (debtor) to a lender (creditor) for the use of borrowed principal over a defined period. These payments are the primary mechanism through which credit markets allocate risk and time preference, often acting as the friction within the temporal exchange of capital. While seemingly straightforward, the calculation and [macroeconomic impact](/entries/macroeconomic-im…