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Well, yeah. The reason to raise rates is in part so that you can lower them to boost the market and avoid a recession. It is a tool, and whenever rates are low
by twiceaday 7y ago
Well, yeah. The reason to raise rates is in part so that you can lower them to boost the market and avoid a recession. It is a tool, and whenever rates are low the tool is less effective.
- yasp 7y agoFear not, friend, for the IMF has a plan to drag us kicking and screaming below the zero-bound, whether the empirical evidence supports the prescription or not. https://www.imf.org/en/Publications/WP/Issues/2019/04/29/Enabling-Deep-Negative-Rates-A-Guide-46598 https://www.imf.org/en/Publications/WP/Issues/2019/04/29/Ena...
- graedus 7y agoYes, that's worth a read. Lots of thinking about how to deal with people moving to cash and how to deal with that or prevent it. The section on "Using Communication Tools to Overcome Political Challenges" is interesting as well. There have been a lot of papers on this topic over the past few years, many of which are listed in the references of this paper.