Should we Have Index Loans?
Though one can see why index loans have been advocated primarily as a means of protecting savers against losses resulting from inflation and/or as a means of stimulating private saving, it is nevertheless remarkable that discussions about, and propaganda for, index loans have largely centred on savers and saving. Index loans possess no characteristics which — even during inflation — put savers and lenders in a better position than ordinary loans (hereinafter called money loans). Whether, with a given rate of inflation, index loans will prove to be more advantageous to lenders than money loans depends entirely on their respective rates of interest.
KeywordsIncome Schizophrenia Expense Stake
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