| Calculation of basic interest rate
[Interest rate on loans must correspond to economic growth rate completely.]
was explained. But economic growth rate in this book doesn’t correspond
to change rate of GDP (Gross domestic product) completely. Whole economic
transaction needs to be included. Change rate of the whole economic transaction
is called basic rate in this book.
Profit by change of equity price, and profit by buying and selling of
used commodities etc. are not included in GDP, so basic interest rate needs
to be calculated by adding these figures.
But equity price is connected with GDP. And market of used commodities is not so big. Therefore, difference between (nominal) economic growth rate and basic interest rate is very small. But when equity price is changed largely, the difference may not be so small.
When minus interest rate will be introduced, formula for computation of
basic interest rate must be defined clearly in order to manage economy
accurately. It is a part of subject of future investigation.
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