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2025

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2025

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The Limits of Negative Rates To Spur Growth

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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