The Full Case Against Ultra Low and Negative Interest Rates

Yves here. This article by William White, famed for his days at the Bank of International Settlements, when along with Claudio Borio, he warned of housing bubbles forming in many economies in the early 2000s, is consistent with arguments we’ve been making against negative interest rates for many years 

(see our most recent example, Negative Interest Rates Are Coming, but There Is No Chance That They Will Work). 

March 18, 2021 by Yves Smith

https://www.nakedcapitalism.com/2021/03/the-full-case-against-ultra-low-and-negative-interest-rates.html

Why have markets reached their exposed position? The answer is that success breeds excess. 

This is the argument of a fascinating new paper from William White, economic adviser to the Bank for International Settlements.

Martin Wolf, Financial Times 24/5 2006

https://www.internetional.se/stabiliseringspolitik.htm#whiteplanb