Free Republic

There are no other constitutional rights in substance without freedom to transact Being meaning to write this for 6 months, but the Canadian response to the trucker protests is illustrating this so vividly, that today is the day. I assume we are in agreement that constitutional democracies are a good form of government or, at least, a better form of government than the other methods we have found to-date. This means that I am taking for granted the following assumptions. - People have fundamental rights to speech, assembly, religion and so on - People are innocent until proven guilty -...

Many central banks reduced policy interest rates to zero during the global financial crisis to boost growth. Ten years later, interest rates remain low in most countries. While the global economy has been recovering, future downturns are inevitable. Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond. To get around this problem, a recent IMF staff study shows how central banks can set up a system that would make deeply negative interest rates a feasible option. In a cashless world,...

Dear Bank of Japan, how do you spell unintended consequences: •PLANNED MARCH SALE OF 10-YEAR JAPANESE GOVERNMENT BONDS THROUGH BANKS TO BE CANCELED AMID EXPECTED BELOW-ZERO YIELDS - NIKKEI •JAPAN'S MINISTRY OF FINANCE IS EXPECTED TO ANNOUNCE WEDNESDAY THE FIRST-EVER DECISION TO CALL OFF SALES OF 10-YEAR JGBS- NIKKEI Here is the full Nikkei report on this absolute stunner of a development: The planned March sale of 10-year Japanese government bonds through banks to retail investors, municipalities and others will be canceled amid expected below-zero yields following the Bank of Japan's recent move to adopt negative interest rates. The Ministry...

In shocking move, Japan adopts negative interest rate as deflation fight falters The Bank of Japan unexpectedly adopted a negative interest rate policy Friday, stunning investors with a move aimed at shielding the country's sluggish economy from volatile markets and slowing global growth. The BOJ said it would use a three-tiered system to charge for excess reserves parked with the institution, an aggressive policy pioneered by the European Central Bank that penalizes banks for holding cash and encourages them to loan it out. "The BOJ will cut the interest rate further into negative territory if judged as necessary," the central...