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Cure for Economic Slumps Seen in Raising Rates: Cutting Research

By mell   Follow   Fri, 23 Nov 2012, 10:11am   333 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 Follow Befriend (1) 249 threads 4,739 comments

   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 Follow Befriend (7) 37 threads 1,539 comments Mountain View, CA bmwman91's website Premium

   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. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 171 threads 4,211 comments Premium

   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 Follow Befriend (5) 57 threads 1,324 comments Premium

   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.