The price-fixing interest rate retards at the central banks of the US, Europe, and Japan are clueless that artificially low interest rates are as damaging as artificially high interest rates. The proper function of a central bank in a fiat money economy is to inject new money into the purchasing power money stream when there is deflation and extract old money out when there is inflation. The market should set interest rates, not a tiny group of “authorities.”
For the true theory of economics, please read Dewey B. Larson’s work The Road to Permanent Prosperity–which you can find on the Web for free. A summary of it is Dr. Satz’s paper “Outline of Larsonian Economics” at http://www.reciprocalsystem.guru.
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