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They have been largely supplanted by the financial markets, which have a will of their own when it comes to the cost of borrowed money.
"Easy money" policies on the part of the central bank, whereby the cost of borrowed funds and their availability are indirectly regulated in such a way as to encourage business borrowing, may lead to higher levels of real investment.
This is key to making the aftertax cost of borrowed money (or aftertax yield on excess cash) very low.
The industry's average 5% pretax return on capital over 18 years is paltry, far short of the cost of borrowed money.
Similar(56)
Take the cost of borrowing dollars.
January 2011: Stella Creasy calls for cap on cost of borrowing.
The third big change is the cost of borrowing.
Is an increase in the cost of borrowing imminent?
The cost of borrowing for municipal governments has fallen significantly.
Gilt futures soared overnight, pushing up the cost of borrowing.
A lower credit rating pushes up the cost of borrowing.
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CEO of Professional Science Editing for Scientists @ prosciediting.com