- — Miles Kimball (@mileskimball)Sat, Jun 21 2014 15:04:53@CmaMonetary If there are no investments that look good even in the context of a healthy economy, negative rates-->consumption or storage.
- — Miles Kimball (@mileskimball)Sun, Jun 22 2014 16:43:16@CmaMonetary Yes, but the rate can just keep dropping until either (A) companies and banks invest or (B) people consume. It'll be at > -10%
- — Miles Kimball (@mileskimball)Sun, Jun 22 2014 19:56:19@CmaMonetary Economy will be effectively stimulated at a much higher rate than -10%. Just saying it will definitely work to go down.
- — Miles Kimball (@mileskimball)Mon, Jun 23 2014 00:04:14@CmaMonetary You say "won't invest" but you seemed to agree that if rate keeps getting pushed down, they would invest before reaching -10%
- — Miles Kimball (@mileskimball)Mon, Jun 23 2014 00:05:33@CmaMonetary I is the right thing to focus on. But rates also affect consumption a bit. The rich have money to spend and rates affect them.
- — Miles Kimball (@mileskimball)Sat, Jun 28 2014 12:05:45Is the market starting to price in the chance of more negative interest rates? Broad Market Gains: Historic Rally http://online.wsj.com/articles/broad-gains-by-stocks-oil-and-other-assets-power-historic-rally-1403911501 …
- — Miles Kimball (@mileskimball)Sat, Jun 28 2014 13:59:11@CmaMonetary Negative 3 month T-Bill rate is easiest to explain: it is just paying more than $10,000 now for $10,000 in 3 months.
- — Miles Kimball (@mileskimball)Sat, Jun 28 2014 14:00:04@CmaMonetary No, regular open market purchases would do it by pushing up the price of T-bills above par & flooding mkt with liquidity.
Q&A about Negative Interest Rates--The Centre for Monetary Advancement and Miles Kimball
byMiles Kimball153 Views