Eric Lonergan on Helicopter Drops and How to Improve Monetary Policy
Macro Musings with David Beckworth
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C E Two, C E Three - What's Your Sensation on the Effect of Interest Rates on Demand?
The effect of interest rates on demand is not linear and doesn't have a stable sign. C e one was the area where it really made the largest impact because there was a liquidity crisis. But i'm sceptical that when you get down towards a half percentage rates or zero, that any body is constrained on the borrowing side. It's more likely that borrowing is somehow being rationed by the banking system. Most credits that wantes have to take on leverage, have access to leverage. I think the impact on people's savings can be quite dramatic. And particularly when you look at societies like europe, when a lot of people are actually using rest income and thinking about in interest interest income
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