Decoding the Banker’s Words. (Warning: Long)

Digital Empire

Before diving in to this article, check out the definition of negative interest here: https://www  .investopedia  .com/terms/n/negative-interest-rate.asp

 Interview with Economist Kenneth Rogoff

https://www  .spiegel  .de/international/interview-with-kenneth-rogoff-on-european-central-bank-a-c3e15f23-bb4e-4737-911c-d3737b5607a1

“It’s Complete Nonsense”

U.S. economist Kenneth Rogoff, 66, believes the European Central Bank should lower interest rates further if it becomes necessary, but argues that private savers should be protected from negative rates.
Interview Conducted by Michael Sauga

DER SPIEGEL: Professor Rogoff, the European Central Bank’s Governing Council has kept its key interest rate at a low level for quite some time now. How long is it going to take before saving money is once again worthwhile?

Rogoff: Indeed, the ECB policy rate is at a record low, but this is a global phenomenon. My guess is that we will see a rise of 1 or 2 percent in the global real (inflation adjusted) interest rate over the next five years. But that’s not what…

View original post 2,042 more words

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: