Sunday, 13 June 2010

Paul Krugman Strange Arguments For Higher Rates

a zero nominal rate.

Theres nothing unnatural� about it. On the contrary, the natural rate of interest�, as Wicksell defined it, is clearly negative right now. So why does Rajan feel that there must be something wrong with low rates? (hes not alone) I think his language, with its odd moral tone, is the giveaway:its the sense that economic...


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