If you happen to be the only one with negative interest rates, you also weaken your currency, which means you make your exports more competitive.
The theory is that if you take interest rates negative, people are going to say, "That's a silly game! I'm not going to lend my money to governments … - Mohamed El-Erian
The theory is that if you take interest rates negative, people are going to say, "That's a silly game! I'm not going to lend my money to governments …
- Mohamed El-Erian
The world is on a bumpy journey to a new destination and the New Normal. - Mohamed El-Erian
The world is on a bumpy journey to a new destination and the New Normal.
We normally think if you're going to lend someone money, you should get some reward for doing this. In Europe, it's a tax! - Mohamed El-Erian
We normally think if you're going to lend someone money, you should get some reward for doing this. In Europe, it's a tax!
As we spend more, and as companies are pushed to invest, they say, "Hey wait a minute! There's more demand in the system. Let's invest more." - Mohamed El-Erian
As we spend more, and as companies are pushed to invest, they say, "Hey wait a minute! There's more demand in the system. Let's invest more."
The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instrum… - Mohamed El-Erian
The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instrum…
Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes? - Mohamed El-Erian
Investors have to ask themselves two questions. How much can we grow our investments? And, can we afford our mistakes?
The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for an intere… - Mohamed El-Erian
The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for an intere…
Most people are under exposed to global assets, including foreign stocks, bonds and currencies. - Mohamed El-Erian
Most people are under exposed to global assets, including foreign stocks, bonds and currencies.
Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to gro… - Mohamed El-Erian
Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to gro…
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