Armstrong Economics Blog/Interest Rates
Re-Posted Aug 19, 2017 by Martin Armstrong
Kenneth Rogoff, the Professor of Economics at Harvard University, is stuck in a time warp where he cannot think out of the box even once. He is telling the central banks that the next recession they will have to resort to negative interest rates and they should prepare now. Despite the fact that negative rates have failed to work in Europe or Japan, seems to be nothing to really consider. So what after almost 10 years of failed policies at the European Central Bank, it will eventually work maybe in 12 or 13 years. It just requires patience.
This is the problem with academics. They don’t get the calls for help. These policies have created a Pension Crisis on the horizon and wiped out so many states. Keynes himself argued that there were times to lower taxes to stimulate. That is just never considered even once.