June 5, 2014
IT'S A DEFLATIONARY EPOCH:
European Central Bank Takes a Radical Step (JACK EWING, JUNE 5, 2014, NY Times)
The European Central Bank cut its benchmark interest rate to a record low on Thursday and, in an unprecedented attempt to stimulate the euro zone economy, said it would begin charging interest on deposits held by the bank.The so-called negative deposit rate has never been tried on such a large scale and is a bid to push down the value of the euro and encourage banks to invest excess cash rather than hoard it in central bank vaults. [...]Many economists have already criticized the moves, which were widely expected, as inadequate to combat the deflation threat that Mr. Draghi has acknowledged.
Posted by Orrin Judd at June 5, 2014 3:51 PM
« INDEED, THE REGIME'S CONTINUANCE IS BASED ON SUCH COWARDICE: | Main | NOBODY HAS IT HARDER THAN HIS DAD DID: »