In my previous post I spoke about the role of interest rates in balancing the supply of real savings (from depositors) and demand for those savings on the part of borrowers (investors): What's difficult to grasp here is that savings are not just abstract dollar notes. When I save, I am implicitly...
Posted to
Money Memes
by
jimmy
on Sun, Oct 12 2008
Filed under: Banking, Standard of Living, Moral Hazard, Negative savings, Lending, Deflation, Inflation