Why cutting rates won’t work

Global interest rates are falling, and will fall dramatically. Alan Greenspan has already cut rates by 0.5%, with one surprise cut in between meetings of the Federal Reserve. And the Fed is going to cut some more this month.

Global interest rates are falling, and will fall dramatically. Alan Greenspan has already cut rates by 0.5%, with one surprise cut in between meetings of the Federal Reserve. And the Fed is going to cut some more this month.

Germany’s Bundesbank has so far resisted calls from the new Social Democrat-led government and other centre-left European governments to cut rates to boost economic growth and jobs. But it is under growing pressure to act.

Japan’s interest rates are already near zero.

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