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Cure for Economic Slumps Seen in Raising Rates: Cutting Research


By mell   Follow   Fri, 23 Nov 2012, 2:11am PST   442 views   4 comments   Watch (1)   Share   Quote   Permalink   Like   Dislike  

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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Mr Happygoluckofus   befriend   ignore   Fri, 23 Nov 2012, 7:37am PST   Share   Quote   Like (1)   Dislike     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   ignore   Fri, 23 Nov 2012, 10:18am PST   Share   Quote   Like   Dislike     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   ignore   Fri, 23 Nov 2012, 10:36am PST   Share   Quote   Like (1)   Dislike     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   ignore   Fri, 23 Nov 2012, 10:51am PST   Share   Quote   Like   Dislike     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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