Are interest rates designed to extract as much money as possible?
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This is the 2nd installment in my Monetary Economics series. The first installment was: Can banks create money out of nothing? The interest rate referred to in this article is the rate set by central banks which affects the lending rates of normal banks. How or why it affects them is not totally clear to me, nor is it important. They are almost always aligned.
Are interest rates designed to extract as much money as possible?
Are interest rates designed to extract as…
Are interest rates designed to extract as much money as possible?
This is the 2nd installment in my Monetary Economics series. The first installment was: Can banks create money out of nothing? The interest rate referred to in this article is the rate set by central banks which affects the lending rates of normal banks. How or why it affects them is not totally clear to me, nor is it important. They are almost always aligned.