[perkoff]

"Thus lowering interest rates increases investment — it reduces the cost of getting money, which reduces the cost of making stuff, which means more things can make a profit."

The problem with this reasoning is that Keynes only considers the demand side for capital. What about the supply side? Will lower interest rates encourage savings?

[aaronsw]

Huh? Lower interest rates are the result of an increased supply of capital -- by the government printing money.

[startingup]

Government printing money increases capital? Do you even know what "capital" means? By your definition Zimbabwe has extreme amounts of capital ... that seems to have done them a lot of good.