When interest rates are low, even low value creation projects are viable.
When rates are high, those exact same projects are no longer viable.
Therefore, i would argue that the labour market is not perfectly allocating labour, but it is close enough for practical purposes.
"labour market is not perfectly allocating labour, but it is close enough for practical purposes."
No its not lmao. Do you even know what characteristics a 'perfect labour market' is even comprised of? Go on, surprise me.
"more of".
If you wanna finesse the discount rate by a few percentage points go ahead. Cash flows contribute more toward the end value number.
in b4 some numpty writes about the fed changing a market set rate.