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Negative Rates Are About the Only Tool Central Banks Have Left
There’s a limit to what monetary officials can do when governments won’t spend money to stimulate the economy.
29 Jul 2019, 12:41 PM IST
(Bloomberg Businessweek) -- Negative interest rates from central banks come with costs. They’re blamed for squeezing banks, punishing savers, keeping dying companies on life support, and fueling a potentially unsustainable surge in asset prices. This isn’t lost on policymakers at the European Central Bank, who pushed a key rate below zero in 2014. But consider their position: Making money cheaper is the main tool they have to boost s...
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