Quote of the Day

“Interest rates are the price of credit, not an indicator of easy and tight money. Unless and until we understand that money is tight, we will never be able to develop a sound monetary policy.”

Scott Sumner

One response to “Quote of the Day

  1. If interest is the price of credit, and we have not repealed the laws of supply and demand, then high interest rates either mean a reduction in the supply of money or an increases in the demand for money.

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