Làm ý nghĩa kinh tế các nước lãi suất cao, tăng lãi suất trước đây và giảm sau này. Trong những ngày của tiêu chuẩn vàng quốc tế, quá trình rất đơn giản. Ngày nay, dưới tiền pháp định, quá trình này vẫn tiếp tục, nhưng kết quả trong một loạt các cuộc khủng hoảng bị cáo buộc. | 36 Making Economic Sense high-interest-rate countries raising interest rates in the former and lowering them in the latter. In the days of the international gold standard the process was simple. Nowadays under fiat money the process continues but results in a series of alleged crises. When governments try to fix exchange rates as they did from the Louvre agreement of February 1987 until Black Monday then interest rates cannot fall in the United States without losing capital or savings to foreign countries. In the current era of a huge balance of trade deficit in the . the . cannot maintain a fixed dollar if foreign capital flows outward the pressure for the dollar to fall would then be enormous. Hence after Black Monday the Fed decided to allow the dollar to resume its market tendency to fall so that the Fed could then inflate credit and lower interest rates. But it should be clear that that interest rate fall could only be ephemeral and strictly temporary and indeed interest rates resumed their inexorable upward march. Price inflation is the consequence of the monetary inflation pumped in by the Federal Reserve for several years before the spring of 1987 and interest rates were therefore bound to rise as well. Moreover the Fed as in many other matters is caught in a trap of its own making for the long-run trend to equalize interest rates throughout the world is a drive to equalize not simply money or nominal returns but real returns corrected for inflation. But if foreign creditors and investors begin to receive dollars worth less and less in value they will require higher money interest rates to compensate and we will be back again very shortly with a redoubled reason for interest rates to rise. In trying to explain the complexities of interest rates inflation money and banking exchange rates and business cycles to my students I leave them with this comforting thought Don t blame me for all this blame the government. Without the interference of government .
