The “exceptionally low costs of borrowing” are not for everyone.

Sir, Martin Wolf in “A strategy for growth that dares to be radical” February 11 speaks of “using the current exceptionally low costs of borrowing as an opportunity to promote a much enlarged programme of investments in infrastructure”. Since those “exceptionally low costs of borrowing” for the government are partially the result of bank regulations that allow for minimal capitals when lending to the government, compared to quite high capital requirements when lending to small business or entrepreneurs, why not just level the field a bit and allow the private sector to help out?

Martin Wolf would do well walking down main¬-street asking those borrowers perceived as riskier by the credit rating agencies, or so small that they are not even perceived, whether their borrowing costs are exceptionally low. In relative terms, they are exceptionally high.