Friday, November 07, 2008

The Answer is "Yes"

A JSOnline writer asks:

Ever heard of a 0% economy?

Speculation is ramping up among some analysts that the U.S. Federal Reserve and reserve banks in other countries may soon be lending money to banks for free.

Sharif, the Japanese central bank has famously had a 0% lending rate for several years.

The bad news: it didn't work. The Japanese economy has been flat-out "zero" growth for about the last 10 years or so.

1 comment:

asianbadger said...

Oh boy!!! Free carry trades!