https://steadystate.org/wp-content/uploads/US-treasury.jpg 253 399 Brian Czech /wp-content/uploads/logo.svg Brian Czech2015-09-16 12:00:132022-01-14 15:26:48What is Wrong with a Zero Interest Rate?
What is Wrong with a Zero Interest Rate?
by Herman Daly
The stock market took a dip, so the Fed will likely continue to keep the interest rate at zero, in conformity with its goal of supporting asset prices by quantitative easing. What is wrong with a zero interest rate? Doesn’t it boost investment, growth, and employment?
There are many things wrong with a zero interest rate. Remember that the interest rate is a price paid to savers by borrowing investors.