>>Bradford DeLong wrote:
>>
>>>Will you allow me to say that lowering the interest rate is likely
>>>to raise the number and aggregate total cost of investment
>>>projects with positive risk-adjusted net present value?
>>
>>In theory, but why then do changes in interest rates do so little
>>to explain aggregate investment?
>>
>>Doug
>
>
>Because other things--business cash flow, expectations of future
>demand, animal spirits--are much more important? (Save in
>construction, where interest rates do matter.)
Exactly what I had in mind. So why does it matter much if changes in the interest rate affect the number of investment projects with NPV?
Doug