A Case for High Interest Rates

We can argue that a high interest rate is good.  If the money comes from the rest of the world, businesses can raise money in the capital market and do not have to borrow money from banks.  Interest rates do not have to be a decisive factor in a business’s decision for capital investment.

In a borderless world, an excessive money supply by a central bank can slip out of the country if there are no attractive opportunities within the nation.  In this way, a government is constantly arbitraged, or disciplined, by its own citizens and by the investors in the rest of the world.

Advertisements

About Andre

Experience Business Developer & Alliance Partner Manager with Strong Technical Background Dealing with Complex Solutions
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s