What if we go the other way? You often hear greece telegram data this version. Let’s, on the contrary, lower the rate. Give businesses cheap loans, this will lead to an investment boom, supply will increase. This will balance supply and demand — and inflation will go down…
put it simply, economics is the science of how to manage limited resources to satisfy society’s unlimited needs. And many people think that cheap loans are the very resources that will allow something to grow quickly.
At the micro level, this can actually work
If you or a particular business is given more money, all other things being equal, you will become richer because you will be able to buy more goods relative to others.
But on the scale of the entire economy, this won’t work. If we give everyone in the country, for example, a thousand rubles at once, we won’t become richer, because the number of goods won’t increase at that moment, they’ll just become more expensive.
Unfortunately, when almost all physical resources
Involved in the economy (labor, equipment, transport get subscriber permission with double opt-in signup forms logistics), pumping up credit will not allow production to increase quickly. After all, what is credit? It’s like money in your wallet – it’s not the resource itself, it’s the ability to buy something with it. Even if your wallet is full of money, but there are no goods in the store, you won’t buy anything ao lists with it. In the same way, credit is an opportunity to get resources for development, for expanding production: labor, equipment. But when there are no more free labor, and production capacity is almost exhausted, cheap credit will not help.