Interest on savings accounts and loans seems like a simple concept. Yet, the powers-that-be can simply fiddle with certain interest rate numbers and bring whole countries to their knees!
Understanding interest rates can be vital both to our individual financial health as well as a large economy.
Let's answer some questions:
- What is interest?
- What should normally determine the rate of interest?
- Is it actually immoral to charge interest?
- Should a banking monopoly or government be in charge of setting interest rates?
Shawn Ritenour, Foundations of Economics: The Christian View (Eugene, Oreg.: Wipf & Stock, 2009) Kindle edition, 192-193.
D. T. Armentano, "The Economics of Price Fixing," Foundation for Economic Education, accessed April 20, 2020, https://fee.org/articles/the-economics-of-price-fixing.