tag:blogger.com,1999:blog-2277215496195926573.post8531658112673555246..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: The latest bit of fashionable economics jargon: “R-Star”.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-16697328208552787782017-03-06T22:49:02.659-08:002017-03-06T22:49:02.659-08:00It's not just the poor who borrow: rich people...It's not just the poor who borrow: rich people also borrow e.g. to help them buy expensive houses and fund businesses. Plus corporations borrow. Thus the effect of interest rate rises are pretty widespread.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-36418226877126736962017-03-06T14:41:11.410-08:002017-03-06T14:41:11.410-08:00Mr. Musgrave,
"or it will have to dissuade t...Mr. Musgrave,<br /><br />"or it will have to dissuade the private sector from spending away the excess stock by offering whatever interest on the stock induces the private sector NOT TO spend away the excess."<br /><br />The purpose of higher interest rates, in a credit-driven economy, is to literally tear money away from the hands of the poor as higher interest rates leave less money for consumption.<br /><br />There is no dissuading necessary.<br />Ahmed Fareshttps://www.blogger.com/profile/07105255828394485657noreply@blogger.com