Tuesday , 5 July 2022

Search Results for: interest rates

Ben Bernanke On the Pros & Cons of Negative Interest Rates (+8K Views)

We can't rule out the possibility that, at some point in the next few years, our economy will slow, perhaps significantly. How would the Federal Reserve respond? What tools remain in the monetary toolbox? In this and a subsequent post, I discuss some policy options the Fed might consider, focusing first on negative interest rates.

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“Helicopter” Money & Negative Interest Rates Are On the Horizon

As the ripple effect of the COVID-19 pandemic rages on, central banks have been quick to act in slashing interest rates. However, with rates already sitting at historic lows before the crisis, it is possible that banks may be forced to employ more unconventional and controversial techniques to try and calm the economy as time goes on.

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Negative Interest Rates Will Likely Hurt, Not Help, Economic & Financial Stability – Here’s Why (+2K Views)

There’s a view in some policy circles that easy monetary policy is goodInterest-Rates for an economy, and the more stimulus you add, the better...This latest stimulus is taking the form of negative interest rates, or charging banks to park their cash with the expectation that this will spur lending and economic growth...In my opinion, however, negative rates—or high rental costs for money storage—are excessive and more likely to hurt, rather than help, economic and financial stability. Here are a few reasons why:

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