Lower interest rates may cause more economic pain

Lower interest rates may cause more economic pain
Will ECB interest rate move work? Pic: Getty

With interest rates already extremely low, a further decline will have a negative economic impact via increased market concentration and lower productivity growth

The real (inflation-adjusted) yield on ten-year US treasuries is currently zero, and has been extremely low for most of the past eight years. Outside of the United States, meanwhile, 40 per cent of investment-grade bonds have negative nominal yields. And most recently, the European Central Bank further reduced its deposit rate to -0.5 per cent as part of a new package of economic stimulus measures for the eurozone....

Subscribe from just 1€

Exclusive offers

Choose the subscription that is right for you

Monthly Subscription

€1

For the first month

€19.99 Monthly Thereafter

Subscribe today

Cancel anytime

Annual Subscription

€200€149

For the first year

€199.99 annually thereafter

Subscribe today

Cancel anytime

Quarterly Subscription

€55€42

For the first 90 days

€55.00 quarterly Thereafter

Subscribe today

Cancel anytime

These offers are not available for current subscribers. Offers and pricing are subject to change without notice.

Terms & Conditions Apply

Please Subscribe or Log in to continue

Subscribe Login

Related Articles

More from The Business Post