Keynes, Explained Briefly

Re:Keynes, Explained Briefly by perkoff on Thursday September 24, 2009 @12:38PM (#841518)

"Thus lowering interest rates increases investment — it reduces the cost of getting money, which reduces the cost of making stuff, which means more things can make a profit."

The problem with this reasoning is that Keynes only considers the demand side for capital. What about the supply side? Will lower interest rates encourage savings?

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Re:Keynes, Explained Briefly by aaronsw on Thursday September 24, 2009 @02:01PM (#841735)

Huh? Lower interest rates are the result of an increased supply of capital -- by the government printing money.

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Re:Keynes, Explained Briefly by startingup on Thursday September 24, 2009 @06:01PM (#842314)

Government printing money increases capital? Do you even know what "capital" means? By your definition Zimbabwe has extreme amounts of capital ... that seems to have done them a lot of good.

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