The Bulletin


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Vital signs. When cutting interest rates might not help

  • Written by Richard Holden, Professor of Economics and PLuS Alliance Fellow, UNSW
Vital signs. When cutting interest rates might not helpWhether there is a floor beneath which cuts in interest rate are ineffective depends in part on house prices.Shutterstock

There’s a meme around official interest rates since the financial crisis, and it goes like this. Central banks have already cut them to nearly zero (or actually zero) but advanced economies are still languishing. Therefore...

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