Concerns start to grow among analysts over the longer-term inflation outlook
Investors say negative real yields are driving the ‘everything rally’ Tommy Stubbington and Robin Wigglesworth FT 7 August 2020
Inlägg
Visar inlägg med etiketten NIRP
Perhaps the deflationary forces that have led to the trend declines in nominal and real interest rates over recent decades may abate and even reverse in the future.
- Hämta länk
- X
- E-post
- Andra appar
One of us is writing a book on The Great Demographic Reversal (Palgrave Macmillan, London, 2020), forthcoming soon, to argue that this will happen. But if not, how can we square the inconsistent objectives of maintaining interest rates low enough to maintain macroeconomic equilibrium without at the same time encouraging debt accumulation, fragile financial markets and an inefficient allocation of resources? This is a question we need a good answer to. Charles Goodhart, Tatjana Schulze, Dimitri Tsomocos VOXeu 4 August 2020 Goodhart's law - Wikipedia
Negative interest rates set stage for next crisis, Stephen Roach says
- Hämta länk
- X
- E-post
- Andra appar
In what could well be a final act of desperation, central banks are abdicating effective control of the economies they have been entrusted to manage. First came zero interest rates, then quantitative easing, and now negative interest rates — one futile attempt begetting another. Just as the first two gambits failed to gain meaningful economic traction in chronically weak recoveries, the shift to negative rates will only compound the risks of financial instability and set the stage for the next crisis. http://www.marketwatch.com/story/negative-interest-rates-set-stage-for-next-crisis-stephen-roach-says-2016-02-18