Of course, you will read about everywhere how low interest rates hurt savers and pensioners. But this obvious and visible consequence is not the real bottleneck. Interest rates are the most important prices in a market economy. Interest rates coordinate production over time. The artificially low interest rates of today will lead to erroneous investment decisions, which will avenge themselves in only one possible way: a depression with a capital D.

How Do Entrepreneurs, Firms and Capitalists Decide Where to Invest?


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