1 year, 8 months ago
What do you think of a Fed funds rate of minus 3 or minus 4 percent?
Currently, the Fed funds rate is 0 to .25 percent. The Fed would like to go even lower below zero to stimulate the economy to minus 3 percent to minus 4 percent. Willem Buiter, chief economist for Citi suggested in a recent Wall Street Journal article that this could be accomplished in 3 unorthodox ways:
1. abolishing currency,
2. taxing currency and
3. ending the fixed exchange rate between currency and bank reserves with the Fed.
Is this a crazy idea or what?
Sources:
http://online.wsj.com/article/SB10001424052748704644404575481390712384072.html?mod=WSJ_hps_RIGHTTopCarousel_1#articleTabs%3Darticle
1. abolishing currency,
2. taxing currency and
3. ending the fixed exchange rate between currency and bank reserves with the Fed.
Is this a crazy idea or what?
Sources:
http://online.wsj.com/article/SB10001424052748704644404575481390712384072.html?mod=WSJ_hps_RIGHTTopCarousel_1#articleTabs%3Darticle
Separate topics with commas, or by pressing return. Use the delete or backspace key to edit or remove existing topics.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
