Cure for Economic Slumps Seen in Raising Rates: Cutting Research


By mell   Follow   Fri, 23 Nov 2012, 10:11am   376 views   4 comments
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http://www.bloomberg.com/news/2012-11-23/cure-for-economic-slumps-seen-in-raising-rates-cutting-research.html

The solution to weak economic growth may be higher interest rates. That seemingly paradoxical remedy can apply if the cause of the slump is a confidence shock that cheap borrowing costs are failing to reverse, two Columbia University economists said in a report published this week. In such a situation, ultra-easy monetary policy risks making fears of deflation a self- fulfilling prophecy as spenders sit tight. If low interest rates cant motivate jittery consumers, then the answer may be the opposite: an increase in borrowing costs. Such a shift can boost inflationary expectations and therefore foster employment, said Stephanie Schmitt-Grohe...

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  1. CaptainShuddup


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    1   3:37pm Fri 23 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    No No! I've been saying this for years, she's saying it wrong.
    According to Iwog every time I say we need higher interest rates to create growth, it's phonetically sounds like "It's all Obama's fault. "

  2. bmwman91


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    2   6:18pm Fri 23 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    CaptainShuddup says

    No No! I've been saying this for years, she's saying it wrong.

    According to Iwog every time I say we need higher interest rates to create growth, it's phonetically sounds like "It's all Obama's fault. "

    Repeat after me. "It's Bush's fault!" By the power I have vested in myself because I can, I now pronounce your an honorary Bay Area liberal.

  3. APOCALYPSEFUCKisShostikovitch


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    3   6:36pm Fri 23 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Our only hope is to simply eliminate taxes and completely deregulate the financial services industry and amend the constitution to guarantee the bail out of all banks, no matter how criminally liable and to repeal the 13th, 14th and 19th Amendments.

  4. mell


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    4   6:51pm Fri 23 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    APOCALYPSEFUCK is Shostakovich says

    Our only hope is to simply eliminate taxes and completely deregulate the financial services industry and amend the constitution to guarantee the bail out of all banks, no matter how criminally liable and to repeal the 13th, 14th and 19th Amendments.

    And the fifth - they always plead the fifth when millions of client money has gone missing.

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