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  • Re: Interest rate: deflation, inflation

    [quote user="LibertarianfromGermany"] Am I the only one thinking that the reason the interest rate tends to stay above the inflation rate is because if it didn't (ie lending out would equal a loss in purchasing power) potential borrowers would just switch to commodities (i.e. gold) to at...
    Posted to Economics Questions (Forum) by onebornfree on Tue, Mar 23 2010
  • Re: Interest rate: deflation, inflation

    [quote user="Nielsio"] [quote user="z1235"] [quote user="Nielsio"]But would I always be able to demand an interest rate that at least covers the inflation rate?[/quote] You can demand any rate (and at any risk level) you want but there's no guarantee that the market...
    Posted to Economics Questions (Forum) by onebornfree on Mon, Mar 22 2010
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