Tag: Inflation

Monetarists, Monetary Policy and Morality

The monetary policy until today is conducted without paying any heed to the socioeconomic consequences. Despite the fact that central banks usually have very strong research wings and they are equipped with lots of resources, it is rare to find a study administered by central banks and relating the monetary policy to the socioeconomic indicators except for employment and growth.

Rate this:

Some Observations on User Cost of Capital

Interest based financial system discourages investment in socially optimal profitable projects, but which are not favored because of relative cost comparison from the market interest rate. If sales do not increase, it may lead to business cycle fluctuations with unplanned increase in inventories. With increased pressure to service debt, the environmental degradation and human resource exploitation may become common and secondary concerns.

Rate this: