Interest Rate Policy Quotes

No one will lend at a negative interest rate; potential creditors will simply choose to hold cash, which pays zero nominal interest.

Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates.

I mean, Dodd-Frank is strangling small community banks. It doesn't make any difference what the interest rate is. They're not - they're not going to loan the money because they can't make any money for one thing plus the cost of compliance.

What is important is that in a capital-scarce country like India, the real interest rate needs to be positive enough to encourage healthy growth of financial savings; we get into macro difficulties when real rates on financial savings become negative for a length of time.

Opponents of central-bank intervention are right about one thing: monetary financing carries serious risks. In order to ensure that it is as safe and effective as possible, it must be used primarily in the event of self-fulfilling debt crises.

The degree of monetary policy ease should be associated with the level of real interest rates, not nominal interest rates.

Government should eschew suasion and directives to banks on interest rates that run counter to monetary policy actions.

I call on the Australian Government to set out the conditions upon which they will provide a taxpayer funded backing for wholesale term funding for Australian deposit taking institutions. I call on the Government it make clear the conditions upon which taxpayer funds will be used in this way.

If we were to underrun our inflation objective over a period of time that we tried to increase interest rates, I think that would be worrisome.

If we can’t puncture some of the mythology around austerity, politics or tax cuts or the mythology that’s been built up around the Reagan revolution, where somehow people genuinely think that he slashed government and slashed the deficit and that the recovery was because of all these massive tax cuts, as opposed to a shift in interest-rate policy - if we can’t describe that effectively, then we’re doomed to keep on making more and more mistakes.