Tag Archives: interest rates

Real interest rates already are negative

Today it was announced that the Deputy Governor of the Bank of England was considering lowering the base rate further still, beyond the current 0.5% into negative terrority. Quite how this is supposed to solve our economic problems isn’t clear. … Continue reading

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More on interest rates

On similar themes to my recent post on interest rates, Detlev Schlicter has written more on the topic. He explains that interest rates are key to co-ordinating consumption and investment: One of the important challenges of coordination for any economy … Continue reading

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Time and money

Interest rates around the world are today set by central banks, by committee. Is this the best way to do it? This depends on what interest rates are. Are they variables we can tinker with to provide the best economic output? … Continue reading

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The Bubble

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Pot meets kettle

Something went very wrong with the UK banking industry and we need to put it right. If only Mervyn King would apply his comments to the organisation he leads… the organisation responsible for boom and bust via the manipulation of … Continue reading

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Barclays fined for doing the Bank of England’s job

It appears that only the Bank of England is allowed to manipulate interest rates: Barclays bank will pay penalties of £290m ($450m) for trying to rig the key interest rates at which banks lend money to each other. If it’s wrong for … Continue reading

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The parable of the broken traffic lights

A parable seems appropriate for a Sunday. Steve Horwitz, writing at The Freeman, explains the Austrian perspective on booms and busts using traffic lights all set on green, causing city-wide accidents: Of course robust economies can mask underlying discoordination for … Continue reading

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