Cure for Economic Slumps Seen in Raising Rates: Cutting Research

By mell   follow   Fri, 23 Nov 2012, 2:11am PST   ↑ Like   ↓ Dislike   499 views   4 comments   Watch (1)   Share   Quote  

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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Tenpoundbass   befriend (1)   ignore (18)   Fri, 23 Nov 2012, 7:37am PST   Like (1)   Dislike     Share   Quote   Comment 1

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. "

bmwman91   befriend (7)   ignore (1)   Fri, 23 Nov 2012, 10:18am PST   Like   Dislike     Share   Quote   Comment 2

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.

APOCALYPSEFUCKisShostikovitch   befriend (27)   ignore (33)   Fri, 23 Nov 2012, 10:36am PST   Like (1)   Dislike     Share   Quote   Comment 3

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.

mell   befriend (8)   ignore (5)   Fri, 23 Nov 2012, 10:51am PST   Like   Dislike     Share   Quote   Comment 4

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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