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How Do Buyers Compete in a Contract for Interest Market?
There's really only four possible combinations. Low supply meets low demand, high supply meets high demand, high Supply meets High Demand and no change in interest rates. None of them imply any characteristic of how cheap expensive money is. So just to get back toour first principles of perspective, if interest were the price of money, then as the money supply hit infinity, then the price ofMoney should go to zero. But we know that that doesn't happen because an infinite monetery supply does not make money free. We're just describing simple supply and amdi demand dinamics between buyers and sellers.