A central bureau setting interest rates is destructive to the structure of production in an economy. Interest rates should be set by markets. One of the root causes of the world recession is central control of interest rates.
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+1Originally Posted by Hazlitt
When was the last time our inflation rate was just a little bit under the interest rate. In 2002 the spread was 4% over, recipe for bubbles. Now the gap in 6% lower.
"No one rules if no one obeys" - Tao
Trichet press conferance at 1:30. Interesting to see his views on Greece and the withdrawal of unlimited emergency fundng on 3, 6, 9, 12 month papers.
Interesting also to see how many times he takes out his handkerchief and slightly rub his lips. I'm betting 5 times for this press conferance.
"No one rules if no one obeys" - Tao
Great news.
If theres no increase in the ECB rate, then there will be no increase in mortgage interest rates.
Right AIB (and others) ?
Of course, bankers are jolly nice chaps.Great news.
If theres no increase in the ECB rate, then there will be no increase in mortgage interest rates.
Right AIB (and others) ?
PS - Trichet has used his Handkie twice now and he is still talking. Looking good for 5 this time...
"No one rules if no one obeys" - Tao
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