Yves here. We’ve sometimes addressed why negative interest rates are a bad idea. A corroborating data point: Sweden ditched its negative interest rate experiment in 2019, and said in mumbled economese that it didn’t do what it was supposed to do.
It been remarkable to witness the casual way in which central banks have plunged into negative interest rate terrain, based on questionable models. Now that this experiment isn’t working out so well, the response comes troubling close to, “Well, they work in theory, so we just need to do more or wait longer to see them succeed.”
Full Employment In The New Monetary Policy Framework, Federal Reserve Governor Lael Brainard, At The Inaugural Mike Mccracken Lecture On Full Employment Sponsored By The Canadian Association For Business Economics (Via Webcast) Date
13/01/2021
I want to thank the Canadian Association for Business Economics for inviting me to join you today, particularly president Bonnie Lemcke and past president Armine Yalnizyan. It is a pleasure to be here with Carolyn Wilkins.
I am honored to deliver the inaugural Mike McCracken Lecture on Full Employment.1 Widely known for his critical contributions in bringing computer modeling to Canadian economic forecasting, Mike McCracken is perhaps best known for his tireless advocacy that lower unemployment remains the most important goal for the economy, which is particularly resonant for me, along with his emphasis on thinking critically and expansively about full employment.2 A similar theme was highlighted by community and labor representat
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