{"id":18971,"date":"2016-03-17T13:35:10","date_gmt":"2016-03-17T18:35:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18971"},"modified":"2016-03-17T13:35:10","modified_gmt":"2016-03-17T18:35:10","slug":"will-the-fed-follow-the-boj-down-the-nirp-rabbit-hole","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18971","title":{"rendered":"Will The Fed Follow The BoJ Down The NIRP Rabbit Hole?"},"content":{"rendered":"

Will The Fed Follow The BoJ Down The NIRP Rabbit Hole?<\/a><\/h3>\n
On Monday, in \u201cJPM Looks At Draghi\u2019s \u2018Package,\u2019 Finds It \u2018Solid\u2019 But Underwhelming<\/a>,\u201d we noted that according to Mislav Matejka, investors would do well to fade the ECB\u2019s latest attempt to jumpstart inflation, growth, and of course asset prices with Draghi’s version of a Keynesian kitchen sink.<\/div>\n
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\u201cOverall, we believe the latest package is far from a game changer<\/strong>,\u201d Matejka opined.<\/p>\n

What was especially interesting about that particular note was the following graph and set of tables which show just how \u201ceffective\u201d NIRP has been for the five central banks that have tried it so far.<\/p>\n

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As you can see, once you go NIRP,\u00a0it\u2019s pretty much all downhill from there whether you\u2019re talking inflation, the economy, or even equities<\/strong>.<\/p>\n

Given that, and given that the entire idea is absurd on its face for a whole laundry list of reasons, one wonders why any central banker would chase down this rabbit hole only to find themselves the protagonist in the latest retelling of “Krugman in Wonderland”.<\/p>\n

In any event, for those wondering whether the Fed will join the ECB, the BoJ, the Riksbank, the SNB, and the NationalBank in this increasingly insane monetary experiment, below, courtesy of Bloomberg, find a chronological history of Fed and analyst commentary on NIRP in America.<\/p>\n

FED COMMENTARY<\/p>\n