Interest on savings accounts and loans seems like a simple concept. Yet, the powers-that-be can simply fiddle with certain interest rate numbers and bring whole countries to their knees!

Understanding interest rates can be vital both to our individual financial health as well as a large economy.

Let's answer some questions:

  1. What is interest?
  2. What should normally determine the rate of interest?
  3. Is it actually immoral to charge interest according to the Bible?
  4. Should a banking monopoly or government be in charge of setting interest rates?

 

Sources Cited:

Shawn Ritenour, Foundations of Economics: A Christian View (Eugene, Oreg.: Wipf & Stock, 2009) Kindle edition, 192-193.

D. T. Armentano, “The Economics of Price Fixing,” Foundation for Economic Education, accessed April 20, 2020, https://fee.org/articles/the-economics-of-price-fixing.