Re:The ballooning money supply may be the key to unlocking i...
by RobertoG on Tuesday October 13, 2020 @05:55PM
(#24770782)
>>"Someone who was not considering borrowing money at 4% may change their mind at 2.5%."
We agree: when the interest rate arrive down to zero there is nothing more than the central bank can do to stimulate the economy. They could add infinite reserves to the economy and nothing would happen, because, obviously, the private sector is not interested in investment. Monetary policy is a blunt instrument.
We agree: when the interest rate arrive down to zero there is nothing more than the central bank can do to stimulate the economy. They could add infinite reserves to the economy and nothing would happen, because, obviously, the private sector is not interested in investment. Monetary policy is a blunt instrument.