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There's something that's been bothering me for a long time about interest rate policy. In general, I have the impression that people take for granted that lowe
by perl4ever 6y ago
There's something that's been bothering me for a long time about interest rate policy.
In general, I have the impression that people take for granted that lower rates are "easier" even when they go negative.
However, it vaguely seemed to me that either side of zero should be considered "tightening". The sign determines which way money is going, but the absolute magnitude constitutes the friction.
So I've wondered if negative rate policy was counterproductive.
Does that make any sense at all?