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Helicopters to the Rescue? (Money and Banking, 8 min read) Euro area and US central bankers are not resorting to helicopter money. Policymakers have retained monetary control and are still independent (they decide what, when, and how much to buy).
The Decline and Fall of Real Yields… Again (The Capital Spectator, 5 min read) Inflation-adjusted interest rates in the US have been negative before (i.e. in 1970). But this time the situation is complicated by a global economic collapse with a lot of uncertainty. The most significant risk posed by negative real rates is deflation which, accompanied by rising debt level, is ‘toxic.’