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The "Natural Interest Rate" Is Always Positive and Cannot Be Negative

Audio Mises Daily

Tags Money and BanksPraxeology

04/09/2015Thorsten Polleit

We're now in the world of negative interest rates, and Mises’s insights about human action are the key to understanding the implications of this, and in understanding the impossibility of a negative “natural” or “originary” interest rate, writes Thorsten Polleit.

This audio Mises Daily is narrated by Robert Hale.

Author:

Thorsten Polleit

Dr. Thorsten Polleit is Chief Economist of Degussa and Honorary Professor at the University of Bayreuth. He also acts as an investment advisor.