18 - Sunday, July 5, 1987 - North Shore News Business NEWS photo rin “Wakefield | interest rate cycle swings IN NORTH America over the last 10 years very few people have been unaffected by the fluctuations in interest rates. At one point in 1981 there appeared to be no limit to how high they could go. However, since then rates have fallen to levels not seen in the last decade. Now the questions must be how far will they fall and why have such dramatic moves occurred. First of all, interest is the price paid for the use of money or cred- it. As with any other commodity, free market forces affect the value depending on the supply aad de- mand at a given time. When the economy is growing and business is booming, greater borrowing requirements from NORTH VAN. RECREATION CENTRE RON ANDREWS COMMUNITY CENTRE WILLIAM GRIFFIN COMMUNITY CENTRE Lower Call with Questions businesses to build new plants and carry higher inventories exert an upward bias on credit costs. Also, during the boom portion of the business cycle more people are working and generally feel more optimistic towards the future. Once again, borrowing by consumers also sends rates higher. Another major influence on what we pay to borrow is the gov- ernment. As well as being a significant borrower itself, in re- cent years, to fund deficits, federal governments through their central banks try to. stabilize currency fluctuations and inflation by fine tuning interest rates. To stem erosion of a country’s currency increasing the premium paid on borrowing within the country will attract foreign capital thereby buoying its value. Higher credit costs will also reduce bor- rowing, slow the economy, check demand and consequently control inflation. The recent increases in tending rates in both the U.S, and Canada are not designed to slow business and borrowing. Instead the up- shifts are occurring as the North American governments try and shore up the dolar, which has recently been dropping at an alar- ming rate. Once the dollar stabilizes, interest rates should resume a downward trend until such time as the economy gains a good head of steam at whick time the cycle will repeat itself. FOR THE North Vancouver Recreation Commission Summer Fitness Package Now through July 15th and receive: 2 complimentary fitness drop-ins 2 complimentary public swim admissions for use by you or a friend (an $11.00 value) Your one-step shopping locations are: DELBROOK COMMUNITY CENTRE 988-6166 929-7314 986-2255 984-4181 KAREN MAGNUSSEN ARENA 984-9341 winner BARBARA TEEGEN is naw the proud owner of a) brand sew Vosaver mini van courtesy of Relloges of Canada. Teepen won second pluce im iw recent contest sponsored by the food computay, feet Watlia of dubitee Chrysler presented Teegen with the van. 171 STUDENTS FOR HIRE perrerraersrrrse FAMILY LAW and DIVORCE MEDIATION LAW OFFICES OF Douglas Chalke 980-4855 ., 683-5096 Grand Opening Special Reg. $1195.00 § 9 9 5 re) * Socketed quality mother board * 640K © 477/8.0 MHZ speeds «Two parallel, serial & game forts ¢ Clock and calendar with battery backup * XT/AT reset button ° Turbo switch & light © }SOW power supply * Colour or monochrome graphics card «8 expansion slots XT Compatible * Full! year parts & labour warranty * Number | authorized Lotus dealer ~ Over 7 years business experience * Now 3 locations to better serve you 1935 3373 A Burrard Kingsway Lonsdale Ave. 736-8408 435-7067 988-9823 (Prices effective {rom July 4th. 1987 Only 30 systems availesie) 1857 Benefits of Tax Reform 1987 Ask about Tax Reform and you. TELECOMMUNICATIONS DEVICE FOR THE DEAF 1-800-267-6650* *8 a.m.-8 p.m, EDT, weekdays, except holidays. cates, Fairer System Cali for Booklets Get detailed information about Tax Reform.