the bank rate system has direct bearing with the prices and values and if the relationship is now growing into a mechanical relationship, take half a percent of one percent and it would show its effect on the values and prices in the market. So they are like a machine, move one part, the other parts of the machine are connected through wheels and things, so however slight may be the effect on the wheel on the other end, but still it would move, it would not remain in the same position.
Similarly the modern economy is like a highly developed machine and the central wheel of the economy is the interest. This is why in connection with all the modern financial problems, you always hear that because America has raised her interest rate, so this is what is happening to Germany and because Japan has not lowered the interest rate, so this is what is happening to Africa and European economy and so on and so forth. So they are continents apart, yet a small fluctuation in the interest rate is adversely affecting or favorably affecting the economy of some other country and their own as well of course.
So this is a very complicated affair which should not be discussed at this session, but by illustrating certain examples how this affects the other parts of the economy, this can be proved and you can ask any student of economics, this is exactly what happens, I mean there is no debate about it.
