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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?


To: ynot who wrote (28831)9/15/1999 4:19:00 PM
From: MeDroogies  Read Replies (3) | Respond to of 50167
 
True, but capital is (usually) a fixed cost amortized over time...so the interest rate is minimized as far as its inflationary effects.

Rates ARE affected by many things, undoubtedly. But when inflation is playing a major role, they all have the same effect - compounding each other.
When inflation is minimized, their roles take on greater meaning.

Review any economy at any time, and you'll see that the MAIN thing you want to control, to keep business humming, is inflation.
The same is true at a micro level....control costs as much as you can...and you're likely to maintain success over time.