High Quote by Dudley North
“So that it cannot be denied, but the lowering of Interest may, and probably will keep some Money from coming abroad into Trade; whereas on the contrary, high Interest certainly brings it out.”
About This Quote
Source Treatise: Economic Observations, 1691
High interest rates attract foreign capital, while low rates discourage it, affecting trade flows.
In simple terms: High rates bring money in, low rates push it out.
Key Takeaway
Adjust rates to balance trade.
Themes
economics
trade
interest rates
Mood
analytical
neutral
Type
economic
policy
When to use this quote
- government budgeting
- business planning
- international trade
- investment strategy
Key Concepts
capital flows
foreign investment
monetary policy
Questions to Reflect On
- How do interest rates influence domestic versus foreign spending?
- What other tools can balance trade without altering rates?
A Different Perspective
Low rates may also stimulate domestic consumption, offsetting trade loss.
