{"id":18358,"date":"2016-02-27T12:10:34","date_gmt":"2016-02-27T17:10:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18358"},"modified":"2016-02-27T12:10:34","modified_gmt":"2016-02-27T17:10:34","slug":"hsbc-looks-at-life-below-zero-says-helicopter-money-may-be-the-only-savior","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18358","title":{"rendered":"HSBC Looks At “Life Below Zero,” Says “Helicopter Money” May Be The Only Savior"},"content":{"rendered":"

HSBC Looks At “Life Below Zero,” Says “Helicopter Money” May Be The Only Savior<\/a><\/h3>\n
In many ways, 2016 has been the year that the world woke up to how far down Krugman\u2019s rabbit hole (trademark) DM central bankers have plunged in a largely futile effort to resuscitate global growth.<\/div>\n
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For whatever reason, Haruhiko Kuroda\u2019s move into NIRP seemed to spark a heretofore unseen level of public debate about the drawbacks of negative rates. Indeed, NIRP became so prevalent in the public consciousness that celebrities began to discuss central bank policy on Twitter.<\/p>\n

When we say \u201cfor whatever reason\u201d we don\u2019t mean that the public shouldn\u2019t be concerned about NIRP. In fact, we mean the exact opposite. The ECB, the Nationalbank, the SNB, and the Riksbank have all been mired in ineffectual NIRP for quite sometime and the public seemed almost completely oblivious. Indeed, even the financial media treated this lunacy as though it were some kind of cute Keynesian experiment that could be safely confined to Europe which would serve as a testing ground for whether policies that fly in the face of the financial market equivalent of Newtonian physics could be implemented without the world suddenly imploding.<\/p>\n

We imagine the fact that equity markets got off to such a volatile start to the year, combined with the fact that crude continued to plunge and at one point looked as though it might sink into the teens, led quite a few people to look towards the monetary Mount Olympus (where \u201cgods\u201d like Draghi, Yellen, and Kuroda intervene in human affairs when necessary to secure \u201cdesirable\u201d economic outcomes) only to discover that not only has all the counter-cyclical maneuverability been exhausted, we\u2019ve actually moved beyond the point where the ammo is gone into a realm where the negative rate mortgage is a reality.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

HSBC Looks At “Life Below Zero,” Says “Helicopter Money” May Be The Only Savior In many ways, 2016 has been the year that the world woke up to how far down Krugman\u2019s rabbit hole (trademark) DM central bankers have plunged in a largely futile effort to resuscitate global growth. For whatever reason, Haruhiko Kuroda\u2019s move […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2086,3756,124,4333,233,1450,282,285,11328,6038,2854,5981,451,1044,534,10141,8019,669,10142,1555,819,1478,4318],"class_list":["post-18358","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-run","tag-boe","tag-central-banks","tag-crude","tag-ecb","tag-equity-markets","tag-european-central-bank","tag-eurozone","tag-excess-reserves","tag-fixed","tag-haruhiko-kuroda","tag-helicopter-money","tag-janet-yellen","tag-mario-draghi","tag-monetary-policy","tag-nim","tag-norges-bank","tag-reality","tag-swiss-banks","tag-swiss-national-bank","tag-twitter","tag-yen","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18358"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18358\/revisions"}],"predecessor-version":[{"id":18359,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18358\/revisions\/18359"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}