Taps Coogan – September 27th, 2020
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Daniel Lacalle, Chief Economist at Tressis Gestión and author of several books including ‘Freedom or Equality,’ recently spoke with NTD News to explain why negative interest rates destroy money and harm the economy.
The punchline is that countries that have adopted negative interest rates have not seen tangible economic improvements but they have seen massive increases in the worst types of debt, all without addressing the underlying structural economic inefficiencies that led to the economic problems in the first place.
It aught to be pretty clear that the decade or so of economic sluggishness across much of the developed world did not start because interest rates were too high. To the contrary. Monetary stimulus is a distraction from the real structural economic problems: noncompetitive taxes, regulations, demographics (aging populations), and more recently, lockdowns (justified or not).
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