Governments should force people to spend more… Interest rates and growth are low because there is way too much money and not enough to do with it.
…Or abolish cash altogether. Citi’s Willem Buiter says having physical currencies hurts the ability of central banks to spur growth.
Cash therefore gives people an easy and effective way of avoiding negative nominal rates.
Governments around the world would do well to follow China’s lead. With corporate investment weak, it now falls to governments to spend more, on long-term investments that can boost productivity and give the economy a nudge.
Malta is a growing economy driven by investments (private and public) and by consumptions, due to a stable growth of company profit and consumers’ buying power and is a great way and model not only for Europe but for many countries instead
Germany certainly has the wherewithal to undertake such a program. And thanks to super low interest rates, many others can, too—including the United States.
Governments around the world have been hoping that aggressive money-printing policies from central banks could get the global economy fully up-to-speed again. It hasn’t happened. Essentially, the free ride is over. Governments need to start contributing.
Global interest rates remain ridiculously low. (One way to think about interest rates is that that they’re essentially the price of money, that is, where supply meets demand.)
The industrial giant said on April 10 that it would return $90 billion to shareholders through a series of dividends and share buybacks. And in order to return that money to shareholders, GE is going to repatriate some of it from foreign countries, racking up what could be a $4 billion tax bill. CEOs are loathe to fork money over to the taxman. If paying taxes is a corporation’s idea of efficient use of capital, then the company is running out of ideas.