gold, page-1821

Heres another loony talking about freeing the interest rate policy up, by allowing negative interest rates.

http://cepr.org/sites/default/files/Goodfriend slides.pdf

　To return inflation to target and employment to the natural rate after a deflationary shock (Australias had a little one of recent?) requires that the central bank has the operational capacity and the independence to do so (implement negative int rates) , and that the public has confidence in the central bank’s determination to do so...

　The problem near the zero bound is that the central bank lacks the capacity to overshoot interest rate stimulus against deflation and recession, and so lacks the credibility to stimulate aggregate spending sufficiently to facilitate a prompt return of employment to the natural rate and inflation to target

　In practice, it has proven difficult also for "quantitative policy" and "forward guidance" to restore full employment and targeted inflation in a timely manner because neither of these policy options can generate the requisite credibility to do so (Goodfriend2014)



and in Japan​

...Gold sales surged in Japan through March after the country’s move to set negative interest rates sent investors scurrying for a shelter, a further sign that global central bank policy of keeping borrowing costs low or below zero is stoking demand for bullion.
Bar sales climbed by 35 percent to 8,192 kilograms in the three months ended March 31 from a year earlier, Tanaka Kikinzoku Kogyo K.K., the country’s biggest bullion retailer, said in a statement Thursday.

and gold price goes up? and makes it a very competitive investment alternative, that goes into a virtuous circle?

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