If you had the power to set the interest rate on your deposits each year, what would you set it at?

Imagine the banking system was reformed so that a bank could not lend out YOUR MONEY unless they borrowed it from YOU at YOUR interest rate. Now imagine that they did borrow it, but now you need to withdraw that money - what do you do? YOU can borrow it back from the FEDERAL RESERVE at the FED funds rate, which is currently at 0% What do you think that market rate would be for this year, under my system? Keep in mind, all poor people would set the rate at 100+% since they would need their money to be liquid.

1 month ago - 1 answers