Norges Bank, the central bank in Norway, today elected to keep the key policy rate unchanged at 1.5%.Â KeepingÂ the policy rate low isÂ in line with most central bank policiesÂ in the western world and Japan. Instead of encouraging good old fashioned bank savings which are funds banks can lend to entrepreneurs for investment purposes, such policies only serve to induce everÂ more debt accumulation and capital consumption. Thrift loses, spending beyond means wins. In the end, all lose.
Leave a Comment
You must be logged in to post a comment.