A Beginner’s Guide to MMT

Re:A Beginner’s Guide to MMT by breischl on Thursday March 21, 2019 @03:06PM (#19456136)

>you can’t cut interest rates below zero

Well, he was wrong on that point.

>Crazy as it sounds, several of Europe’s central banks cut interest rates below zero in 2014, and then Japan followed. By mid-2016, some 500 million people in a quarter of the world's economies were living with rates in the red

https://www.bloomberg.com/quicktake/negative-interest-rates

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Re:A Beginner’s Guide to MMT by throw0101a on Thursday March 21, 2019 @04:38PM (#19457052)

> Well, he was wrong on that point.

He revisits the point:

> We now know that interest rates can, in fact, go negative; those of us who dismissed the possibility by saying that people could simply hold currency were clearly too casual about it.

* https://krugman.blogs.nytimes.com/2015/03/03/how-negative-ca... * https://krugman.blogs.nytimes.com/2015/03/06/the-below-zero-... * https://krugman.blogs.nytimes.com/2016/02/12/the-political-e...

The Great Recession was really an "interesting" time for economists: one usually can't run experiments on macroeconomic theories / hypothesis. :)

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