Conclusion
Not easy
Last week we identified the money supply, the credit provided by the private sector lending institutions and the interest rates associated with both savings and loans. These are monetary variables that help one to obtain a sense of the behaviour of the economy and the key participants thereof. Discussing these issues is not an easy task, especially as one attempts to simplify them and avoid the theoretical arguments behind the use and value of these -variables. Yet, there is value in using the reasoning behind the theories to gain insights into the Guyana economy. In last week’s contribution it was also observed that the money supply was made up of the liquid assets that people and businesses use to make payments and to engage in short-term investments.
