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Interest Rates as Resource Allocators

Leonard Jay Santow
Business Economics
Vol. 6, No. 1 (January 1971), pp. 36-39
Stable URL: http://www.jstor.org/stable/23480182
Page Count: 4
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Interest Rates as Resource Allocators
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Abstract

A call is made for fewer institutional and legal rigidities in interest rates to free up the flow of funds. A basic shortage of funds exists so that some economic and social problems will remain unfunded. Interest rates provide an insight into the basic forces moving the economic and financial system. The market mechanism and interest rates are an integral part of the "free" society.

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