4 ms·
Oh, dear. Money isn't created by governments; it's created by banks (and, given demand, shadow banks). Raising interest rates reduces the stock of viable projec
by scatters 6y ago
Oh, dear. Money isn't created by governments; it's created by banks (and, given demand, shadow banks). Raising interest rates reduces the stock of viable projects thereby reducing lending and money creation, which halts inflation. This is trivial stuff.
The laws of millennia ago were appropriate for their time but would be hilariously ill matched to today's world. Look at Turkey to see where that takes you.
- gher-shyu3i 6y ago> it's created by banks They work in tandem with the government obviously. > Raising interest rates reduces the stock of viable projects thereby reducing lending and money creation, which halts inflation. This is trivial stuff. Setting interest rates to 0 also heavily reduces lending because no one would be incentivized anymore to lend as they're not getting any benefit. This is why in Islam, lending is purely an act of charity since the lender can in no way shape or form be contractually owed any sort of benefit, monetary or otherwise. This is proven to work up to even recent times before everyone was forced by the West to succumb to their dangerous economic practices. Claiming that these ideas are only suitable for millenia ago is outright false.