The failure of Negative Interest Rates

In past decades, central banks in developed countries, such as the Bank of England, the European Central Bank and the Federal Reserve, have often dropped rates to spur post-recession economic growth. However, in the decade following the Great Recession of 2008, several central banks experimented with negative interest rates, with Denmark being the first toContinue reading “The failure of Negative Interest Rates”

Long-term US Inflation?

Inflationary fears have returned to the US, as the worst of the pandemic comes to an end. Following periods of expansionary economic policy, fears of excessive inflation have naturally always arisen – as was the case in 2017, following the expansionary tax reductions passed by the Trump Administration. However, given the sheer amount of stimulusContinue reading “Long-term US Inflation?”

Inflation during the 1970s

Inflation isn’t a major issue in Britain today, with the inflation rate averaging at just under 2% over the past decade. However, those living in the 1970s weren’t so fortunate, with the inflation rate reaching 25% in 1975. Prior to the 1970s, economists thought that there was an inverse relationship between unemployment and inflation. However,Continue reading “Inflation during the 1970s”