arius820

    • arius820arius820
      ·2022-07-27
      Nice article

      No more negative interest rates

      @Alvin Chow
      The Eurozone made history when they cut interest rate till it went below zero in 2014. One reason was to spur growth and another one was more pressing, which was to resolve the sovereign debt crisis for some of the member countries.No one knew what to expect since there was no precedence. But the debt issue did get attenuated and GDP growth was stabilizing around 1-2% in subsequent years. It kind of worked but more like slapping on a band aid.Today, the same problems have came back to haunt Eurozone again - struggling economy and sovereign debt issues unresolved. But this time is different. Eurozone can no longer cut rates anymore because inflation has been rising. It doesn't help when US is raising interest rate and causing the US Dollar to strengthen. Commodities are priced in USD and th
      No more negative interest rates
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