Interest rates should naturally find themselves higher than inflation. Why? Because it should cost money to borrow money. If it doesn't you have every incentive to 'grow' wealth by playing financial games instead of by innovating and producing. When you have an economy built on tricks it's going to be bubble after bubble. If your economy is built on innovation and production it's unstoppable.
Interest rates should naturally find themselves higher than inflation. Why? Because it should cost money to borrow money. If it doesn't you have every incentive to 'grow' wealth by playing financial games instead of by innovating and producing. When you have an economy built on tricks it's going to be bubble after bubble. If your economy is built on innovation and production it's unstoppable.
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