Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
the inherent absurdity is that in order for your example to work, there must always be a borrower willing to pay interest.  there isn't.  As japan has proved, if you have more savings than needed for investing, you can have zero interest rates for a long, long time.

it's not like adding yeast to dough and standing back in a universe with an infinite supply of oxygen and flour.

by HiD on Fri Jan 19th, 2007 at 07:32:47 AM EST
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