Latest update August 20th, 2026 10:20 AM
Latest News
- OMAI targets average US$1.2B in annual gold production for 18 years
- Total power demand to jump five-fold under development plan
- U.S. debt crosses $40 trillion threshold after doubling under Trump and Biden
- Hamas condemns ‘new war crime’ as Israel kills 10 in crowded Gaza hubs
- Teacher killed after car ‘drifted’ into trench at Lima Sands
Liquidity confusion
Dear Editor,
Allow me to congratulate Elizabeth Daly for proving my point on excess liquidity.
We are all aware of the fact that individuals do not go to the Bank of Guyana to borrow money and one of the many functions of a Commercial Bank is to lend money to individuals and companies.
If, however, these Commercial Banks have little incentive to lend to individuals and businesses, because it is safer to invest in Treasury Bills with the Government, then what would be the result of such action? Would it be managed inflation and the maintenance of sound macroeconomic fundamentals?
Please don’t reply, Elizabeth.
Everall Franklin, M.P
GAP-ROAR
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.