The Fed can only influence short term rates. So I guess the answer is, yes. But isn’t that happening anyway? Inflation hovers around 2%, and rates on savings say, 0.02%. So real net interest would equal -1.94% over one year.[/quote]
And that’s what confuses me…I’m not exactly sure about EU economic stats right now, but the EU is the largest economy in the world IIRC.
Assuming the EU was doing some level of QE – what does that say about the state of the EU economy?
I don’t think even Japan did NIR (negative interest rates).
