Retrieving "Fiscal Reliability" from the archives

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1. Capital Formation

   Linked via "fiscal reliability"

   The real interest rate ($r$) is conventionally seen as the price of borrowing and the reward for saving. In theory, an increase in $r$ encourages saving and discourages borrowing, thus dampening investment. Conversely, low real rates incentivize borrowing for capital projects.
   However, the Threshold of Apathy (TA)/) dictates that if the real interest rate falls belo…