…Calmly observing the changing world

At the Riksbank, which now has a deposit rate of minus 0.25 per cent, the most vocal advocate of the policy is deputy governor Lars Svensson, a world-renowned expert on monetary policy theory and a close associate of Ben Bernanke, chairman of the US Federal Reserve, since they worked together at Princeton University. CNN (Financial [...]

Last Tuesday, the Federal Reserve made the history-making but expected decision to lower interest rates (for banks borrowing money “short term”) to a range of “0% to 0.25%”. Theoretically, this will stimulate the economy, but no one actually seems to believe that allowing banks to borrow endless amounts of money for free will help very [...]