Six Ways NIRP Is Economically Negative

NegativeRatesRead this accessible article by John Mauldin; he lists six ways that the Negative Interest Rate Programme (NIRP) is bad for the global economy. They are described as 'Failure to Stimulate', 'Betraying Lord Keynes', 'Policy Paralysis', 'Distorting Signals', 'Killing Insurance Companies and Pension Funds Softly' and 'Repressing Retirees'. The last two are of particular concern to him as in a NIRP environment, the returns insurers and pension plans make on their investments no longer adequately fund the promises they have made. In his view, savers are paying the price for the arrogance and mistakes of central bankers. Read more