1. Subzero Interest.
- Author
-
SABLIK, TIM
- Subjects
INTEREST rate risk ,FEDERAL Reserve monetary policy ,PRICE inflation ,PRICE deflation ,ECONOMICS - Abstract
The article reports on cutting key interest rates below zero by Japan and Europe's central banks to improve economic activity in countries in recession. Topics discussed include changes in short-term policy rates in economy by the U.S. Federal Reserve Bank and consequences of negative rate policy to encourage commercial banks to make loans to avoid charges on cash, making exports more competitive and boosting inflation as import become more expensive, to combat deflation.
- Published
- 2016