{"id":595,"date":"2008-12-16T22:49:31","date_gmt":"2008-12-16T22:49:31","guid":{"rendered":"http:\/\/astraea.net\/blog\/?p=595"},"modified":"2008-12-17T09:58:20","modified_gmt":"2008-12-17T09:58:20","slug":"next-the-fed-will-pay-you-to-borrow-their-money","status":"publish","type":"post","link":"https:\/\/www.astraea.net\/blog\/next-the-fed-will-pay-you-to-borrow-their-money\/","title":{"rendered":"Next, the FED will pay you to borrow their money."},"content":{"rendered":"<p>The <a href=\"http:\/\/news.bbc.co.uk\/2\/hi\/business\/7786282.stm\">US FED has dropped interest rates to the floor: zero to a quarter of a percent<\/a>.\u00a0 That probably won&#8217;t have a big impact, except short term (a day or so)\u00a0 on stock market sentiment.\u00a0 But if banks aren&#8217;t actually lending to businesses, then its not going to stimulate economic activity.<\/p>\n<p>So, maybe negative rates would help.\u00a0 &#8220;We&#8217;ll pay you to borrow our money.\u00a0 But you&#8217;ve got to promise to lend it out.&#8221; It might be cheaper, more efficient and more effective than a fiscal stimulus.\u00a0 Though a fiscal stimulus is needed too.<\/p>\n<p>As we&#8217;ve noted for months, the interest rate is not what&#8217;s going to make or break the economy.\u00a0\u00a0 The behaviour of players in the debt and equity markets is.\u00a0 And right now, they&#8217;re hardly even playing at all which is why the economy is stagnating.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US FED has dropped interest rates to the floor: zero to a quarter of a percent.\u00a0 That probably won&#8217;t have a big impact, except short term (a day or so)\u00a0 on stock market sentiment.\u00a0 But if banks aren&#8217;t actually lending to businesses, then its not going to stimulate economic activity. So, maybe negative rates &hellip;<br \/><a href=\"https:\/\/www.astraea.net\/blog\/next-the-fed-will-pay-you-to-borrow-their-money\/\" class=\"more-link pen_button pen_element_default pen_icon_arrow_double\">Continue reading <span class=\"screen-reader-text\">Next, the FED will pay you to borrow their money.<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[11],"tags":[],"class_list":["post-595","post","type-post","status-publish","format-standard","hentry","category-interest-rates-and-currencies"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4hwcd-9B","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/posts\/595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/comments?post=595"}],"version-history":[{"count":0,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/posts\/595\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/media?parent=595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/categories?post=595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/tags?post=595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}