- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
ECB cuts rates
Posted on 6/5/14 at 8:05 am
Posted on 6/5/14 at 8:05 am
LINK
Not quite QE...But I look for it to be coming before year end about the time the US QE is wrapping up.
Not quite QE...But I look for it to be coming before year end about the time the US QE is wrapping up.
This post was edited on 6/5/14 at 8:06 am
Posted on 6/5/14 at 9:58 am to LSU0358
Probably signals that EU not going to get much help from China, Japan and US Central Banks.
There has been talk of neg. rates. This is from the St. Louis Fed: Paper from Jan 2013 (Just 18 mos ago):
St.Louis Fed.
There has been talk of neg. rates. This is from the St. Louis Fed: Paper from Jan 2013 (Just 18 mos ago):
quote:
Some analysts have argued that such examples suggest that central banks should consider setting negative policy rates, including negative rates on deposits held at the central bank. Such proposals are foolish for a number of reasons. First, a policy rate likely would be set to a negative value only when economic conditions are so weak that the central bank has previously reduced its policy rate to zero. Identifying creditworthy borrowers during such periods is unusually challenging. How strongly should banks during such a period be encouraged to expand lending? Second, negative central bank interest rates may be interpreted as a tax on banks—a tax that is highest during periods of quantitative easing (QE).3 Central banks typically implement QE policies via large-scale asset purchases. Sellers of these assets are paid in newly created central bank deposits, which, in due course, arrive in the accounts of commercial banks at the central bank. It is an axiom of central banking that the banking system itself cannot reduce the aggregate amount of its central bank deposits no matter how many loans are made because the funds loaned by one bank eventually are redeposited at another. Is it reasonable for the central bank to impose a tax on deposits held at the central bank when the central bank itself determines the amount of such deposits held by banks and the banking system? Perhaps these and other considerations caused European Central Bank President Mario Draghi in a recent press conference to label negative deposit rates "uncharted waters" and dismiss any possibility that the ECB would consider it."
St.Louis Fed.
Popular
Back to top
Follow TigerDroppings for LSU Football News