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Strategies & Market Trends : The coming US dollar crisis

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From: Giordano Bruno4/27/2009 8:31:16 AM
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Fed study puts ideal US interest rate at -5%

By Krishna Guha in Washington

Published: April 27 2009 03:06 | Last updated: April 27 2009 03:06

The ideal interest rate for the US economy in current conditions would be minus 5 per cent, according to internal analysis prepared for the Federal Reserve’s last policy meeting.

The analysis was based on a so-called Taylor-rule approach that estimates an appropriate interest rate based on unemployment and inflation.
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