Kenneth Rogoff, the Professor of Economics at Harvard University, is stuck in a time warp where he cannot think out of the box even once. He is telling the central banks that the next recession they will have to resort to negative interest rates and they should prepare now. Despite the fact that negative rates have failed to work in Europe or Japan, seems to be nothing to really consider. So what after almost 10 years of failed policies at the European Central Bank, it will eventually work maybe in 12 or 13 years? It just requires patience? Well even a broken watch is correct twice a day for a brief moment in time.
This is the problem with academics. They don’t get the calls for help. A friend in the central bank of Canada referred a major Canadian company to us.
This post was published at Armstrong Economics on Aug 19, 2017.