Sometime in the next 24 hours we will be switching European Tribune over to a new layout. This will involve a little downtime and no doubt some teething troubles. Do not adjust your set. - Colman

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This is deflationary in that expected government payout to banks over the next years will be lower, but only slightly so as the interest is very low and the banks are not very good at spending their money into the rest of the economy.

Technically correct, but will be more than offset by having the reference interest rate at longer maturities drop to zero, which will mean that investments which were unprofitable on yesterday's interest rate will become profitable tomorrow.

And expanding the domestic capital plant is (shock, horror) inflationary (though only very slightly in the present state of demand).

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jan 11th, 2013 at 11:07:38 AM EST
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