Money and interest rate function
1 Nov 2019 Imagine a bank that pays negative interest. In this upside-down world, savers are penalized and borrowers get paid to borrow money. Crazy as Real interest rates play an important role in the economy because real interest your return after inflation will average -1 percent—your money will actually lose All else being equal, a larger money supply lowers market interest rates. Conversely, smaller money supplies tend to raise market interest rates. The current