Breaking Kenya News Forum


Price of Money

all prices convey information about supply and demand, information that is vital to commerce, rates should not mislead, but should reflect real conditions of supply and demand.  It rates rise, it tends to dampen excessive borrowing and dangerous speculation.  Higher rates are just the signal needed to induce people to save money when it is needed.  Then the growth of capital in turn allows rates to fall naturally, accurately reflecting supply and demand conditions. Lower rates that are contrived by money manipulation encourage excesses and the formation of dangerous bubbles that eventually burst with devastating effects. Do you think that the world should provide a stable means of exchange ?

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