tag:blogger.com,1999:blog-8897997766931633186.post4072645322190159293..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Negative Real Interest Rates and a Gold StandardBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8897997766931633186.post-59621150098270544002016-05-28T03:49:40.983-04:002016-05-28T03:49:40.983-04:00Trading on gold requires a lot of attention and on...Trading on gold requires a lot of attention and only then we could get positive results, if we’re not keeping eye on these things correctly then we could struggle badly. I am working with OctaFX company and with them, I find it ever too easy which is especially to do with their daily market news and analysis service, it’s so easy to trade through this with been so accurate while It’s free as well, so that makes it even better and easier to use.Sanianoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-58622934476443109972011-08-04T08:08:38.349-04:002011-08-04T08:08:38.349-04:00Hillary:
This is Keynes' liquidity preference...Hillary:<br /><br />This is Keynes' liquidity preference theory of interest, right?<br /><br />I suppose I can't ask to much of a comment, but I am not sure why it is the _nominal_ interest rate that is doing these things rather than the _real_ interest rate. Also, it would help me if you would distinguish between the real and nominal stock of gold gold. <br /><br />Clearly, I have some kind of quasi-normative view that the interest rate _should_ coordinate saving and investment. Saving--the allocation of expenditure between current and future consumer goods, and investment, the allocation resources between the production of current and future consumer goods. Getting gold mining right, or distributing gold between jewelry and coin, or creating the proper real capital gains or losses on gold holdings may well be consequences of a gold standard, but is generating these effects the role of the interest rate?Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-86855376997531508562011-07-28T04:25:09.801-04:002011-07-28T04:25:09.801-04:00Bill, under a gold coin standard, you have failed ...Bill, under a gold coin standard, you have failed to analyse the capital market as divided into two forms of investment: into the gold stock (i.e. holdings of coin or bullion) and holdings of other non-financial capital assets (buildings, land improvements, equipment, vehicles, inventories of goods, consumer durables etc.). The role of the nominal interest rate under a gold coin standard is to regulate the distribution and ownership of the present gold coin stock. Holders of coin forego interest the bank or short term low risk financial assets would give them. The opportunity cost of holding gold coin is the nominal interest rate on financial assets. The stock of gold coin in a closed economy is fixed in the short run, but the demand to hold it as reserves is not fixed. Concerns about the solvency of banks could increase demand to hold gold coin, as could disruptions to the bank payment services.<br /><br />However, in the long run, the interest rate regulates the allocation of capital between the two forms. The marginal return on gold coin is the transaction costs saved and other benefits provided to holders. These marginal benefits would decrease as the gold coin stock increased, other things being equal. So, if the stock of gold coin were inefficiently small, the nominal interest rate would be high, and this would reduce the viability of investing in buildings etc. Reduced demand would lead to price level deflation, which would move the gold market into surplus, which increases the stock of gold coin over time, which brings down the nominal interest rate. Conversely, if the stock of gold coin were inefficiently large, the marginal return on holding it would be low, and the nominal interest rate reduced. This would make investments in buildings etc. more viable, increasing demand, causing inflation, which raises the price level and brings the gold market into deficit.David Hillaryhttps://www.blogger.com/profile/12270742541175771322noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-76466561576016185342011-07-21T08:54:42.806-04:002011-07-21T08:54:42.806-04:00These last two posts are a paper masquerading as b...These last two posts are a paper masquerading as blog post. It's going to take me a long time to digest them. Thanks a lot.Currenthttps://www.blogger.com/profile/08645195276844244481noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-14675048461971893392011-07-20T20:43:34.252-04:002011-07-20T20:43:34.252-04:00I think you forget about a gold standard.I think you forget about a gold standard.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com