Comments on: Make Sure You Get This One Right http://www.creditwritedowns.com/2009/07/make-sure-you-get-this-one-right.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/07/make-sure-you-get-this-one-right.html#comment-56696 Edward Harrison Sun, 05 Jul 2009 10:22:00 +0000 http://www.creditwritedowns.com/?p=9240#comment-56696 Steve, it's good that you mention the Swedes. I will need to address their negative interest rate solution. Edward Hugh had a good article on them a few days back. I don't think they are alone. They can simply be more aggressive because they are small. Steve, it’s good that you mention the Swedes. I will need to address their negative interest rate solution. Edward Hugh had a good article on them a few days back.

I don’t think they are alone. They can simply be more aggressive because they are small.

]]> By: Stevie b. http://www.creditwritedowns.com/2009/07/make-sure-you-get-this-one-right.html#comment-56694 Stevie b. Sun, 05 Jul 2009 07:29:00 +0000 http://www.creditwritedowns.com/?p=9240#comment-56694 "The problem, as the Japanese can attest to, is that deflation is excruciatingly difficult to get rid of, once it has become entrenched. I am in no doubt which of the two evils I would prefer, but we may not have the luxury of choosing our own destiny." But...with an ageing population and baby-boomers retiring on a fixed pension in greater & greater numbers, the vested interests of an increasing number of people in the developed world would be best-served by deflation. "I will add that if my worst fears are proven correct and we have to fight a bout of deflation, the authorities will have no choice but to try and provoke price increases through aggressive policy measures." This is the scary bit for savers/retirees. Sweden has started the ball rolling with negative interest rates - can others be far behind? http://globaleconomicanalysis.blogspot.com/2009/07/sweden-cuts-deposit-rate-to-negative-25.html “The problem, as the Japanese can attest to, is that deflation is excruciatingly difficult to get rid of, once it has become entrenched. I am in no doubt which of the two evils I would prefer, but we may not have the luxury of choosing our own destiny.”
But…with an ageing population and baby-boomers retiring on a fixed pension in greater & greater numbers, the vested interests of an increasing number of people in the developed world would be best-served by deflation.

“I will add that if my worst fears are proven correct and we have to fight a bout of deflation, the authorities will have no choice but to try and provoke price increases through aggressive policy measures.”
This is the scary bit for savers/retirees. Sweden has started the ball rolling with negative interest rates – can others be far behind?

http://globaleconomicanalysis.blogspot.com/2009/07/sweden-cuts-deposit-rate-to-negative-25.html

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