Will Gold or Silver Pay the Higher Interest Rate?

The Wrong Approach This question is no longer moot. As the world moves inexorably towards the use of metallic money, interest on gold and silver will return with it. This raises an important question.
Which interest rate will be higher?
It’s instructive to explore a wrong, but popular, view. I call it the purchasing power paradigm. In this view, the value of money – its purchasing power -is 1/P (where P is the price level). Inflation is the rate of decline of purchasing power.

This post was published at Acting-Man on May 10, 2017.