Editing Interest (section)

===Money and inflation===
Loans and bonds have some of the characteristics of money and are included in the broad money supply.

National governments (provided, of course, that the country has retained its own currency) can influence interest rates and thus the supply and demand for such loans, thus altering the total of loans and bonds issued. Generally speaking, a higher real interest rate reduces the broad money supply.

Through the [[quantity theory of money]], increases in the money supply lead to inflation. This means that interest rates can affect inflation in the future.<ref>{{Cite web|date=2009-06-23|title=What's the Relationship Between Inflation and Interest Rates?|url=https://www.pbs.org/newshour/economy/whats-the-relationship-between|access-date=2020-08-31|website=PBS NewsHour|language=en-us|archive-date=2021-01-24|archive-url=https://web.archive.org/web/20210124042222/https://www.pbs.org/newshour/economy/whats-the-relationship-between|url-status=live}}</ref>