OK, you basically have to compare your own internal discounting rate of consumption with the public rate of interest offered on savings.
If your own internal rate is higher than the public one, then indeed you should borrow to consume (or put off saving).
Companies only care about the public rate---if they have a higher rate of reliable return internally, they can keep borrowing money to invest until there's an equilibrium. A low interest rate makes companies more forward looking.
If your own internal rate is higher than the public one, then indeed you should borrow to consume (or put off saving).
Companies only care about the public rate---if they have a higher rate of reliable return internally, they can keep borrowing money to invest until there's an equilibrium. A low interest rate makes companies more forward looking.