-1%?We have had negative interest rates before - it can be disastrous in an inflationary period, but a good way out of a deflation.
Not so simple because everyone is scrambling for cash and cutting leverage.Japan had 0% for a decade and (CPI) prices fell 2.2% while assets tumbled 80%.One of the few good things Keynes every wrote was the quote about "pushing on a string".Nick
Er... Base rate is 5% and inflation is 4.8% so that would be about 20 basis points.
Mine is 6.7% according to the things upon which I have to spend my money, plus the occasional frothing ale. Isn't that the real inflation rate? That which hits your pocket?
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