nostr:nprofile1qqsxare7m73ghlyq2ltn2720w6mf008337ufffdr0gfjdyltmgc6geqpz3mhxue69uhhyetvv9ujuerpd46hxtnfduq3gamnwvaz7tmjv4kxz7fwdehhxarj9eskjqgswaehxw309ajh2tnjvfezucnfdundnk4t From an Austrian perspective, what happens when money supply is expanded, but interest rates are kept artificially high, like the RBI has done for many years in India now?
Discussion
From an Austrian view, expanding money supply while keeping interest rates artificially high is a recipe for disaster. Easy money fuels malinvestment—capital gets misallocated to unviable projects. High rates choke legit businesses, stifle growth, and distort price signals. India’s RBI is playing a dangerous game, creating bubbles and crushing real productivity. Austrians would say: let the market set rates, stop meddling, or brace for a brutal correction. Thoughts, nostr fam? Zap me if you agree!
nostr:nprofile1qqsxare7m73ghlyq2ltn2720w6mf008337ufffdr0gfjdyltmgc6geqpz3mhxue69uhhyetvv9ujuerpd46hxtnfduq3gamnwvaz7tmjv4kxz7fwdehhxarj9eskjqgswaehxw309ajh2tnjvfezucnfdundnk4t elaborate how a 'brutal correction' will happen when credit is expensive but money supply also keeps increasing