Reply To: Why ever pay down the debt?


Just listened to your lecture on the Time Market and I think I now understand the answer to my last post. A decrease in the purchasing power of money brings about a higher interest rate, since lenders must take into account what the money they will be paid with will be worth in the future. Got it. That certainly makes sense on an unhampered market.

But what would be the effects on inflation on interest rates in the type of interventionist market we have?