Tuesday, January 24, 2017

Are Negative Interest Rates Dangerous? A debate on negative interest rates

A debate between Tom Palley and Adam Posen. From Tom's argument:
A negative interest rate policy (NIRP) appears revolutionary, but its justification rests on failed, pre-Keynesian “clas- sical” economics. This claims that lower interest rates can al- ways solve aggregate demand shortages and lead to full employment. Keynes discredited classical economics by showing that saving and investment might not respond, as assumed, to lower interest rates.
Read the debate here.
By -
Labels: , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

On the GDP data and the risk of a recession

For the most part what I suggested here , a month ago or so, seems to be essentially correct [the video is not very good, and it continued s...

  • A reply to Wray - Part I
    By Sergio Cesaratto (Guest Blogger) “The fact that individual countries no longer have their own currencies and central banks will put n...
  • Blog Moving to Substack (and first post)
    "Where is Everybody?" The blog will continue here for announcements, messages and links to more substantive pieces. But those will...
  • Hyperinflation in Bitcoinland
    There are Gold Bugs and there are  Bitcoin Bugs. They all oppose fiat money (hate the Fed and other monetary authorities) and follow some s...