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The Limits of Negative Rates To Spur Growth
#1 · January 24, 2020, 11:32 AM
Negative interest rates are supposed to incentivize spending, and spending is supposed to spur domestic investment. Look at these plots, you can see limitations.
The conclusion: "It’s becoming abundantly clear that stimulating growth through creative monetary policy has real limitations, and that reality is going to increasingly hamstring central bankers in the future".
Source: Fortune
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