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Solvency risk is not the only reason for a positive interest rate. Let's say that US Government borrows $10 000 from you, for 1 year. This means that you cant
by nopriorarrests 10y ago
Solvency risk is not the only reason for a positive interest rate.
Let's say that US Government borrows $10 000 from you, for 1 year. This means that you cant spend this 10k next year by investing them into some new cool company or just by eating lot of pizzas and drinking margaritas.
So, you say you don't want to be compensated for this, and you will happily lend 10K with 0% interest rate?
- bubbleRefuge 10y agoif I had a money printing machine yes I wouldn't care. I'd be more interested in the utility to society of the money I was 'lending' . the be precise: http://moslereconomics.com/wp-content/graphs/2009/07/natural-rate-is-zero.PDF http://moslereconomics.com/wp-content/graphs/2009/07/natural...