Negative central bank interest rates

For many years it was assumed that official interest rates, as set by central banks, could not go below zero. In recent years this rule – the “Zero Lower Bound” constraint, as it was known – has been decisively broken. How does monetary policy work in the brave new world of negative official interest rates, and what are the longer term implications?

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Read Butler on Smith

Adam Smith’s An Inquiry into the Nature and Cause of the Wealth of Nations (The Wealth of Nations, TWoN) is one of those books that many people refer to, but few have actually read. Possibly not surprising, since the Penguin version consists of 522 packed pages. But, crucially, in contrast…

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Laws of Economics

I have formulated three laws of economics. Like many such laws, they may appear obvious. But I don’t think this detracts from their truth. Stein’s first law of economics: When someone tells you, this time it’s different, sell. If they advance esoteric theories to back up their statement, sell at…

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