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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: DuckTapeSunroof who wrote (32727)7/2/2010 12:39:18 PM
From: Wayners  Read Replies (1) | Respond to of 103300
 
You could have below zero rates, but it would be like a Govt subsidy where you get a tax break for borrowing money. Lenders certainly won't do that on their own. Seems to me from an intuitive theoritical perspective that if higher (positive) interest rates are the cure for inflation, then couldn't negative interest rates be the cure for deflation, meaning as we all know from history with say Japan for example that zero interest rates aren't good enough to counter deflation?