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She argues that a delay in loan repayments and a lower interest rate act in the same way as a write-off, which is why many analysts point out that the Greek debt mountain is worth the equivalent of 90% of GDP in real terms and not the 180% commonly quoted.
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In this model, then, the interest rate acts as a price in controlling the behaviour of the individual agents whose activities are to be coordinated.
Low interest rates act like a tax increase on savers and pensioners, by reducing their income.
Why have interest rates acted so bizarrely?
Therefore, financial, rather than trade, flows act as the key determinant of exchange rates; for example, interest rate differentials act as a magnet for yield-driven capital.
To set the interest rate, Compound acts kind of like the Fed.
They ranged from the liberal (such as easing government controls over interest rates, which act as a way of subsidising lending to state enterprises at the expense of ordinary savers) to the draconian (beefing up the police and "resolutely" clamping down on dissidents using "the model of class struggle").
In other words, for cutting interest rates to act as stimulus, there has to be an additional capacity to spend.
By 2006, a Marine captain in South Carolina was doing battle with JPMorgan Chase to get the mortgage interest rate reductions the act requires.
But analysts said the bank's policy toward interest rates has acted as a bulwark against the vagaries of Europe's fiscal policy.
Interest Checking: This account features everything that a regular checking account has (ATM privileges, check-writing, etc)., but it includes an interest rate, so it acts a little like a regular savings account.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com