With negative rates in Europe (the ECB deposit rate is -0.5% though the lending rate is zero), Switzerland and Japan, how low can rates go in the UK? The answer is that they can go lower, which means negative. The Bank of England is currently studying how that would work in practice, with the Governor …
US Election – an economic perspective
The forthcoming US election is a momentous one. Many in the US argue that it is the most important US election in living memory for several reasons. Others abroad agree because who becomes President has enormous potential consequences not just for the US, but for the rest of the world. From an economic perspective, the …
Quantitative Easing and the risks of rising wealth inequality
In the face of unprecedented actions to safeguard public health, government-mandated lockdowns have seen global economies in free-fall. In response, central banks have embarked on several innovative monetary and fiscal measures. Official short-term interest rates were cut to record lows in most advanced economies. In some jurisdictions, like in the EU and Japan, rates have …
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