A loan has a fixed time period, and usually a fixed interest rate too. The monetary value is straightforward. Of course there's a risk you won't get paid back b

A loan has a fixed time period, and usually a fixed interest rate too. The monetary value is straightforward. Of course there's a risk you won't get paid back by the debtor, as there's risk in all business. But the monetary value of the payback can't vary wildly based on pure future speculation. A variable interest rate alters the situation, but if interests rates vary wildly during the fixed loan period, you've got an entire economy out of control. In recent years, interest rates have been relatively steady.