Tag: Stagflation

Coming Up Next on That 70s Show: Stagflation?

 

shutterstock_167938691Last week, the European Central Bank lowered interest rates — to negative 0.1%. “What,” you may ask, “is a negative interest rate?”

As the New York Times explained before the move,

When a bank pays a 1 percent interest rate, it’s clear what happens: If you deposit your money at the bank, it will pay you a penny each year for every dollar you deposited. When the interest rate is negative, the money goes the other direction.