26 January 2010

MACROECONOMICS: Davos Preview: Time For Higher Interest Rates.


REUTERS/NYTIMES/Opinion, Edward Hadas/
"Policy interest rates cannot be reduced further. Government deficits and total debts are already reaching high levels. Since few governments would have the capacity to oblige by adding substantially to their deficits, a new crisis would call for new measures. Governments and their central banks might resort to the ultimate weapon in the official arsenal: printing money."