Loans - Governments Save
If the demand for loans doesn’t balloon as interest rates come down, a zero interest rate is achievable. All the government needs to do is save a little every year. Savings are cumulative. There is no rush. A government could spend decades building up its wealth if it wanted to. When the economy is growing, it would be best for the government to increase its wealth at a rate faster than the growth rate of the economy. How much faster than the growth rate depends on how quickly the government wants to make loans available cheaply.
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