The first country to combat this economic depression is Sweden. Please link to Mish's posting of Sweden Cuts Deposit Rate to NEGATIVE .25%.
Econblog Review has previously panned Dr. Greg Mankiw's and Dr. Willem Buiter's proposals for negative interest rates in this country. To see it actually implemented shows both how fragile the economy is wherever it is implemented or talked about, and how bank-friendly and saver-unfriendly the powers-that-be are.
Thus gold continues to "have a bid", no matter what the official CPI numbers are.
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This is wonderful posting. Thank you.
ReplyDeleteBathmate