"Lowering the cost of money is a good thing for corporations, " said Mr Clarke.
"Real" interest rates are high in Japan, even though the nominal cost of money is almost zilch.
When the Fed started raising rates in June 2004, the overnight cost of money was just 1%.
Greenspan has been giving us the worst of both worlds: a mounting cost of money and more inflation.
The bank has a clear target keeping inflation at bay which it can achieve by altering the cost of money.
As a result, companies forgo potential capital, which raises the cost of money, something that has exacerbated the recession.
The only cost that seems really cheap and may be a big part of the problem is the cost of money.
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The nominal cost of money went up and up, and so did prices.
If a central bank creates too much credit, the nominal cost of money eventually rises and investment patterns are skewed.
The added cost of money raises the cost of business and is passed on as price increases, causing even higher inflation.
The bankers were only doing what comes naturally to bankers-trying to profit on the spread between the cost of money and what they can charge.
Now companies will have to start counting the true cost of money.
But, as the 1970s and early 1980s agonizingly demonstrated, increasing the nominal cost of money does not necessarily undo the debauching of the dollar.
Local-government construction, a key feature of the investment boom, also remains unaffected by the cost of money, so long as credit is freely available.
But the most important thing the central bank can do is to ease tensions in the money markets and reduce the effective cost of money.
Though the move stabilized the currency, it further choked the corporate sector by raising the cost of money and inviting a black market in the currency.
What will hurt the housing market is not the alleged excess in prices we've been hearing so much about but the plain old higher cost of money.
Straightforward costs of jobs lost to overly burdensome policies and opportunity cost of money misallocated to subsidize uncompetitive energy sources are well known, exhaustingly documented, and endlessly debated.
With the widespread adoption of the mobile phone, especially in the developing world, we saw an opportunity to leverage our technology and significantly lower the cost of money transfer.
In turn, it can squeeze suppliers of generics--it has less clout with branded drugs, which have no competition--to service the likes of Kmart, Walgreens and CVS. The cost of money has dropped, too.
The annual rate of consumer-price inflation was at 2.8% in November, which is in line with what the Polish central bank calls "a conventional policy" of keeping the cost of money above the level of inflation.
Indeed, while the Fed can use its powers to push the cost of money below the natural market rate, there's nothing saying that those in possession of cash have to offer their savings at that rate.
But, of course, if Portes is right, a rise in the cost of money for George Osborne would not be a mark of failure - because it would be a corollary of our escape from recession.
They - just like Mr. Weller said, they're really getting into a lot of different types of loans to make the cost of money, i.e. interest rate, more favorable for them on the entering into the market.
The arbitrage has to do with the fact that the earnings yield on equities (earnings divided by price) is often more than the aftertax cost of money (which is, roughly, two-thirds of whatever your long-term interest rate is).
Thus, the picture starts to look rather like the one that led Professor Kennedy to make his premature judgment: twin budget and current-account deficits raising the cost of money and making the dollar volatile, while politicians and voters start to wonder whether they have taken on too much.
Of course, they will cost lots of money -- he just forgot to tell us the price tags and how he would pay for them.
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