Interest rates are very sensitive to the money supply, and investment is insensitive to interest rates. Interest rates are insensitive to the money supply, and investment is very sensitive to interest rates.
Interest rates are insensitive to the money supply, and investment is insensitive to interest rates.
Interest rates are very sensitive to the money supply, and investment is very sensitive to interest rates. In Iran, since interest is forbidden by Islamic Law, there is no bond market. Consequently, losses of nationalized firms and government deficits are financed by money creation. Between 1979 and 1983, Iran s money supply doubled. Nominal GDP will approximately double.