At the onset of recession in 2008, the Cycles Research Institute pointed out that the
leading economies had been slow in reducing their interest rates.
Today, since leading economies have reduced interest rates to the bone, I would
suggest it is the remaining economies (Developing, Emerging, whatever you wish to say)
which need to cut their interest rates, which are really too high in some cases.
If money is expensive to borrow, the small companies which are not adequately capitalized
are the ones who suffer and go under. Not a good thing, as the families who rely on them
become without means of income.
There is great wisdom in the American Statesman Benjamin Franklin advocating an
interest rate of 6 percent perannum, so many years ago.
Our learned friends in the banking inudstry like to experiment with the teachings and
observations of Keynes and Adam Smith. I suggest they also consider the timeless
wisdom of Ben Franklin. Then, I believe, the world will resume growth as it did for
the last 150 years or so.
Any comments, please let me know.