Economist commentary: the stability of the financial system

Christine Lagarde, ECB 

Money only has value if there is a relationship with the value created in the real economy. So the value of money is not determined by the government, but by the private sector. The role of the financial sector is to allocate savings to those who can use them to achieve a higher return than the interest they have to pay.

The extremely low interest rates frustrate this system. Caveat emptor.

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