Big Danger at the Lower Bound

Thursday, November 3rd 2016 - 10:20 UTC

Full article 5 comments

By Kenneth Rogoff

Markets nowadays are fixated on how high the US Federal Reserve will raise interest rates in the next 12 months. This is dangerously shortsighted: the real concern ought to be how far it could cut rates in the next deep recession. Given that the Fed may struggle just to get its base interest rate up to 2% over the coming year, there will be very little room to cut if a recession hits. Read full article

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chronic
Yellen:

Viper or thief?
Nov 03rd, 2016 - 01:28 pm - Link - Report abuse 0
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:o))
The increase in the interest rates is just a joke & a threat. So is the illusion of the improvement in the World [USA] Economic Situation.
Nov 03rd, 2016 - 02:48 pm - Link - Report abuse 0
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chronic
Concur.

There is still little demand for credit.
Nov 03rd, 2016 - 03:15 pm - Link - Report abuse 0
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:o))
Fed’s conventional and unconventional policy tools are:
- Exaggeration
- Deception
- Creation of Illusions/hope
- Motivating speculations
- Denying the reality of worsening economy
Nov 04th, 2016 - 09:55 pm - Link - Report abuse 0
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chronic
^^^^^^^^^^^^
Sad but true.
Nov 05th, 2016 - 05:03 pm - Link - Report abuse 0
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