Tomáš Sedláček: Interest Rate Works Like Alcohol
Former economic advisor to the President of Czech Republic, Vaclav Havel, is known as one of the 5 Hot Minds of Economics. Tomáš Sedláček recently visited the office of RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce) to investigate the ethics of economics. In the following video he talks about the monopoly of the government to print money which was taken away from the politicians and given to central banks. However, what the central banks are doing is not printing money but printing debt.
In his presentation, he gave interesting descriptions on common economic terms using his own words to make it easier for people to understand them. Some of his description were about monetary policy, fiscal policy and also interest rates. He described monetary policy as the monopoly of the government to print money; fiscal policy as the monopoly of the government to indebt others and interest rates as working like alcohol.
A very interesting and insightful presentation about the economy today which makes one understand how we got into this never-ending crisis in the first place. Watch the presentation below:
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