Block Level Planning Revisited


6 This is what one eminent economist- central banker in a developing country has to say on high interest rate policies: "It seehis self-evident to say that since capital is scarce, interest rates should be high. But how high is high enough? And if neither wages nor taxes. nor final product prices are supposed to change, can it not be that the encroachment of the 'rate of interest on the rate of proBt may be a retrograde act insofar as entre- oreneurship is even scarcer than investment finance?" [Patel (1966)].