The Limits of Negative Rates To Spur Growth

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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