But is anyone paying attention? Here in the United States, inflation continues to be well below the trend level, we have tons of idle workers, and yet all you ever hear about is the possible need for tightening. Why not at least cut the interest on reserves back to zero?
It’s a very interesting story in the world of economics yet there’s minimal mainstream reporting of it. Adopting a negative interest rate may sound like a crazy idea, but isn’t it arguable that quantitative easing is even crazier?