PROSPECTS OF INTEREST RATES AS LIQUIDITY INJECTION
DIMINISHES DURING NEXT 12 MONTHS
Ever since Bretton Woods, New Hampshire, where the World Bank
and the International Monetary Fund were created, the dynamics
of interest rates, liquidity and employment remain the utmost
concern of a free, democratic and market society. As the injection
of money presents a hazard towards inflation, it is the interest
rate which gauges and can indirectly regulate the demand for
liquidity. During periods of economic recessions, unemployment
gains a notorious place in the ample list of government
priorities… But, it is not freed from other unwanted effect if
money is thrown into the market, single-handedly and without
safeguards. The main safeguard against unwanted inflation as a
result of acting to resolve the unemployment issue, interest rates
can, in a rational manner, at least diminish inflationary
tendencies, if, liquidity is thrown into the economy as the sole
solution.
From judging recent U.S. Government policies, and despite the
