Edward Chancellor, whose writings have graced this site on several occasions, is once again featured. From his Breakingviews column: “It’s Time to Rediscover the Importance of Interest.” The essay is a prelude to the August 16, 2022 release of his latest book, The Price of Time: The Real Story of Interest, which I highly recommend. The Kindle version is available on Amazon and can be preordered.
Inflation is back, and along with it a widespread obsession about the future direction of interest rates. This is hardly surprising. In the past, a dose of tight money has brought prices under control. However, interest’s role in ensuring price stability is just one of its many functions. Our neglect of those other functions explains why the financial markets are in such a jumpy state today.Continue reading “It’s Time to Rediscover the Importance of Interest”