SlideShare a Scribd company logo
Mawuli Koffi Gilbert Bossiade
Okuto Suzuki
Xinwei Xie
Chinmay Naik
Joseph Kong
Natalia Guerrero Maldonado
Team 7
Zero Interest Rates
and
QE are Ineffective Tools for Stimulating Economy.
Agenda
● Introduction
● Zero Interest Rate Policy
● Quantitative Easing
● Arguments
● Conclusion
● Q&A
Zero Interest Rate
● Macroeconomic concept of stimulating growth while
keeping interest rates close to zero
● It is used during recession
An unconventional monetary policy in which a central
bank purchases government securities or other securities
from the market in order to lower interest rates and increase
the money supply.
QE (Quantitative Easing)
Short Term
Foreign Investors Net Exports
Currency Devaluation
Argument 1: Short-term and Long-term
Impact
Long Term
Argument 1: Short-term and Long-term
Impact
Inflation Up Government Debt Benefit don't outlast QE program
Negative Interest
Bank of Japan’s Attempt
Plan
・Weaken yen against USD
・Increase loans for businesses
・Foreign investments
・Increase capital investment
・Stimulate the economy
Result
・Stronger yen
・Stock price crash
・Slumping consumption
・Increased the investments in
governments bonds
・Caused negative bond interest
rates.
QE QE
Negative
Interest(% Change)
Japan Consumer Price Index
2011 12 13 14 15 16
1.5
1.0
0.5
0.0
▲0.5
▲1.0
▲1.5
Argument 2: Increase Inequality
Widening the wealth gap
Fed’s low interest rates inflating stock market values,
housing and gold.
Benefited richer individual borrowers/investors. However, the wealth
gain did little to increase productive investment and consumption.
Fixed income receivers, savers without asset and creditors were
penalized.
Argument 3: Increases debt
• Increased debt puts stress on the economy. Government
will cut spending or increase tax to pay off debt which
lowers the productivity of the economy.
• Lowers the country’s reputation if debt is defaulted or other
countries lose confidence
Conclusion
• Short-term and long-
term impact.
• Increase Inequality
• Increase Debt
• QE only stabilizes and not
stimulates economy
• More controlled approach
• Monetary policy not only
misallocated credit but also
redistributed wealth
• Lowers productivity of
economy
• Leads to higher interest rates
and crowding out (long-term)
Zero interest rate and qe

More Related Content

What's hot

Quantitative Easing: A Monetary Policy Tool
Quantitative Easing: A Monetary Policy ToolQuantitative Easing: A Monetary Policy Tool
Quantitative Easing: A Monetary Policy Tool
Mohammadali Surti
 
MONETARY POLICY Study case macro
MONETARY POLICY Study case macroMONETARY POLICY Study case macro
MONETARY POLICY Study case macro
Tasca Maverick
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policyrcarp1234
 
Quantitative easing
Quantitative easing Quantitative easing
Quantitative easing
Turu Turuu
 
Investment Outlook for 2014
Investment Outlook for 2014Investment Outlook for 2014
Investment Outlook for 2014
John M Olson, CLTC
 
2Q 2013 IFRS Earnings Presentation
2Q 2013 IFRS Earnings Presentation2Q 2013 IFRS Earnings Presentation
2Q 2013 IFRS Earnings PresentationGaranti Bank
 
Bangladesh bank monetary policy 2014 july to december
Bangladesh bank monetary policy 2014 july to december Bangladesh bank monetary policy 2014 july to december
Bangladesh bank monetary policy 2014 july to december Rifat Ahsan
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policy
Shubham Raut
 
Market Perspectives - December 2017
Market Perspectives - December 2017Market Perspectives - December 2017
Market Perspectives - December 2017
Mark Biegel
 
Raghunomics
RaghunomicsRaghunomics
Raghunomics
Mohit Chaudhary
 
Monetary policy ppt
Monetary policy pptMonetary policy ppt
Monetary policy ppt
Subarna Dhakal
 
Ch 16 presentation part b
Ch 16 presentation part bCh 16 presentation part b
Ch 16 presentation part bkrobinette
 
Monetary Policy & Fiscal Policy
Monetary Policy & Fiscal PolicyMonetary Policy & Fiscal Policy
Monetary Policy & Fiscal Policy
abdulsami786
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
Bhagawan Sinha
 
Quantitative tools of monetary policy
Quantitative tools of monetary policyQuantitative tools of monetary policy
Quantitative tools of monetary policyParveen Kumar
 
Currency peggiing
Currency peggiingCurrency peggiing
Currency peggiing
Teacher
 
A Macroeconomic Framework for Growth Under “The New Normal”
A Macroeconomic Framework for Growth Under “The New Normal”A Macroeconomic Framework for Growth Under “The New Normal”
A Macroeconomic Framework for Growth Under “The New Normal”
Economic Research Forum
 
devaluation of Japaneses currency
devaluation of Japaneses currency devaluation of Japaneses currency
devaluation of Japaneses currency
nishant bhatia
 

What's hot (20)

Quantitative Easing: A Monetary Policy Tool
Quantitative Easing: A Monetary Policy ToolQuantitative Easing: A Monetary Policy Tool
Quantitative Easing: A Monetary Policy Tool
 
MONETARY POLICY Study case macro
MONETARY POLICY Study case macroMONETARY POLICY Study case macro
MONETARY POLICY Study case macro
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policy
 
Quantitative easing
Quantitative easing Quantitative easing
Quantitative easing
 
Chap010
Chap010Chap010
Chap010
 
Investment Outlook for 2014
Investment Outlook for 2014Investment Outlook for 2014
Investment Outlook for 2014
 
2Q 2013 IFRS Earnings Presentation
2Q 2013 IFRS Earnings Presentation2Q 2013 IFRS Earnings Presentation
2Q 2013 IFRS Earnings Presentation
 
Econ Term Paper
Econ Term PaperEcon Term Paper
Econ Term Paper
 
Bangladesh bank monetary policy 2014 july to december
Bangladesh bank monetary policy 2014 july to december Bangladesh bank monetary policy 2014 july to december
Bangladesh bank monetary policy 2014 july to december
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policy
 
Market Perspectives - December 2017
Market Perspectives - December 2017Market Perspectives - December 2017
Market Perspectives - December 2017
 
Raghunomics
RaghunomicsRaghunomics
Raghunomics
 
Monetary policy ppt
Monetary policy pptMonetary policy ppt
Monetary policy ppt
 
Ch 16 presentation part b
Ch 16 presentation part bCh 16 presentation part b
Ch 16 presentation part b
 
Monetary Policy & Fiscal Policy
Monetary Policy & Fiscal PolicyMonetary Policy & Fiscal Policy
Monetary Policy & Fiscal Policy
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
 
Quantitative tools of monetary policy
Quantitative tools of monetary policyQuantitative tools of monetary policy
Quantitative tools of monetary policy
 
Currency peggiing
Currency peggiingCurrency peggiing
Currency peggiing
 
A Macroeconomic Framework for Growth Under “The New Normal”
A Macroeconomic Framework for Growth Under “The New Normal”A Macroeconomic Framework for Growth Under “The New Normal”
A Macroeconomic Framework for Growth Under “The New Normal”
 
devaluation of Japaneses currency
devaluation of Japaneses currency devaluation of Japaneses currency
devaluation of Japaneses currency
 

Viewers also liked

Resume- 4 years exp
Resume- 4 years expResume- 4 years exp
Resume- 4 years expNaren Logi
 
Aprendizaje Colaborativo
Aprendizaje ColaborativoAprendizaje Colaborativo
Aprendizaje Colaborativo
hvillagra
 
Signos discomovil
Signos discomovilSignos discomovil
Signos discomovil
Signos Discomovil
 
Licencias creative commons slideshare.
Licencias creative commons slideshare.Licencias creative commons slideshare.
Licencias creative commons slideshare.angelbmillan
 
Catalogo dic. 2016
Catalogo dic. 2016Catalogo dic. 2016
Catalogo dic. 2016
Chaz Guatemala
 
Calendrier des formations 2016-2017
Calendrier des formations 2016-2017Calendrier des formations 2016-2017
Calendrier des formations 2016-2017
Les Abattoirs SMAC - Scène de Musiques Actuelles
 
Tan Siew Jen Jessica Resume
Tan Siew Jen Jessica ResumeTan Siew Jen Jessica Resume
Tan Siew Jen Jessica Resumejessicatan_91
 
How-Has-SOX-Affected-Foreign-Private-Issuers by Joern
How-Has-SOX-Affected-Foreign-Private-Issuers by JoernHow-Has-SOX-Affected-Foreign-Private-Issuers by Joern
How-Has-SOX-Affected-Foreign-Private-Issuers by JoernJoern Schlimm, MBA ?
 
KEYES_FUNCTIONAL_ONLINE
KEYES_FUNCTIONAL_ONLINEKEYES_FUNCTIONAL_ONLINE
KEYES_FUNCTIONAL_ONLINEMary Keyes
 
K&S Quality Associates Provides Quality Solutions Matching International Stan...
K&S Quality Associates Provides Quality Solutions Matching International Stan...K&S Quality Associates Provides Quality Solutions Matching International Stan...
K&S Quality Associates Provides Quality Solutions Matching International Stan...
qualityassociates1
 
MD_ProductEffect_OT_102_EN_USA_infographic
MD_ProductEffect_OT_102_EN_USA_infographicMD_ProductEffect_OT_102_EN_USA_infographic
MD_ProductEffect_OT_102_EN_USA_infographicJonathan Richards
 
Oca 3
Oca 3Oca 3
Boletín SOFI 3425
Boletín SOFI 3425 Boletín SOFI 3425
Boletín SOFI 3425
Maria Perez
 
Af navidad presentacion
Af navidad presentacionAf navidad presentacion
Af navidad presentacion
miciudadreal
 
El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...
El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...
El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...
Andbank
 
2016 Dec Barcamp Talk on Nobel Prizes
2016 Dec Barcamp Talk on Nobel Prizes2016 Dec Barcamp Talk on Nobel Prizes
2016 Dec Barcamp Talk on Nobel Prizes
sg1000win
 
Evaluacion grupo
Evaluacion grupoEvaluacion grupo
Evaluacion grupo
Yuitap Angulo
 
Planificación informática
Planificación informáticaPlanificación informática
Planificación informática
Amarilys Morales
 

Viewers also liked (20)

Resume- 4 years exp
Resume- 4 years expResume- 4 years exp
Resume- 4 years exp
 
Aprendizaje Colaborativo
Aprendizaje ColaborativoAprendizaje Colaborativo
Aprendizaje Colaborativo
 
Signos discomovil
Signos discomovilSignos discomovil
Signos discomovil
 
Licencias creative commons slideshare.
Licencias creative commons slideshare.Licencias creative commons slideshare.
Licencias creative commons slideshare.
 
Catalogo dic. 2016
Catalogo dic. 2016Catalogo dic. 2016
Catalogo dic. 2016
 
Calendrier des formations 2016-2017
Calendrier des formations 2016-2017Calendrier des formations 2016-2017
Calendrier des formations 2016-2017
 
El error
El errorEl error
El error
 
Tan Siew Jen Jessica Resume
Tan Siew Jen Jessica ResumeTan Siew Jen Jessica Resume
Tan Siew Jen Jessica Resume
 
Diseño de progra tarea
Diseño de progra tareaDiseño de progra tarea
Diseño de progra tarea
 
How-Has-SOX-Affected-Foreign-Private-Issuers by Joern
How-Has-SOX-Affected-Foreign-Private-Issuers by JoernHow-Has-SOX-Affected-Foreign-Private-Issuers by Joern
How-Has-SOX-Affected-Foreign-Private-Issuers by Joern
 
KEYES_FUNCTIONAL_ONLINE
KEYES_FUNCTIONAL_ONLINEKEYES_FUNCTIONAL_ONLINE
KEYES_FUNCTIONAL_ONLINE
 
K&S Quality Associates Provides Quality Solutions Matching International Stan...
K&S Quality Associates Provides Quality Solutions Matching International Stan...K&S Quality Associates Provides Quality Solutions Matching International Stan...
K&S Quality Associates Provides Quality Solutions Matching International Stan...
 
MD_ProductEffect_OT_102_EN_USA_infographic
MD_ProductEffect_OT_102_EN_USA_infographicMD_ProductEffect_OT_102_EN_USA_infographic
MD_ProductEffect_OT_102_EN_USA_infographic
 
Oca 3
Oca 3Oca 3
Oca 3
 
Boletín SOFI 3425
Boletín SOFI 3425 Boletín SOFI 3425
Boletín SOFI 3425
 
Af navidad presentacion
Af navidad presentacionAf navidad presentacion
Af navidad presentacion
 
El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...
El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...
El NO a la reforma constitucional en Italia marca el inicio de semana - Infor...
 
2016 Dec Barcamp Talk on Nobel Prizes
2016 Dec Barcamp Talk on Nobel Prizes2016 Dec Barcamp Talk on Nobel Prizes
2016 Dec Barcamp Talk on Nobel Prizes
 
Evaluacion grupo
Evaluacion grupoEvaluacion grupo
Evaluacion grupo
 
Planificación informática
Planificación informáticaPlanificación informática
Planificación informática
 

Similar to Zero interest rate and qe

Events in the Japanese Bond Market
Events in the Japanese Bond MarketEvents in the Japanese Bond Market
Events in the Japanese Bond Market
GoldenPi
 
Events in the Japanese Bond Market
Events in the Japanese Bond MarketEvents in the Japanese Bond Market
Events in the Japanese Bond Market
GoldenPi
 
The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...
The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...
The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...
pkconference
 
Biegel Waller Investment Advisory Market Perspective
Biegel Waller Investment Advisory Market Perspective Biegel Waller Investment Advisory Market Perspective
Biegel Waller Investment Advisory Market Perspective
David Berger
 
AFM .pptx
AFM .pptxAFM .pptx
AFM .pptx
ShadafMe
 
gp1305a.pdf
gp1305a.pdfgp1305a.pdf
gp1305a.pdf
nailaawanmzd
 
gp1305a.pdf
gp1305a.pdfgp1305a.pdf
gp1305a.pdf
nailaawanmzd
 
Economics ppt project
Economics ppt projectEconomics ppt project
Economics ppt project
Fehmeeda Zeenat
 
Market perspective november 2016
Market perspective   november 2016Market perspective   november 2016
Market perspective november 2016
Mark Biegel
 
Inflation & Bangladesh Economy
Inflation & Bangladesh EconomyInflation & Bangladesh Economy
Inflation & Bangladesh Economy
fjahan
 
Market Perspective April 2017
Market Perspective April 2017Market Perspective April 2017
Market Perspective April 2017
Mark Biegel
 
Market Perspective - July 2016
Market Perspective - July 2016Market Perspective - July 2016
Market Perspective - July 2016
Mark Biegel
 
NCFE Experiences and Basic Financial Education
NCFE Experiences and Basic Financial EducationNCFE Experiences and Basic Financial Education
NCFE Experiences and Basic Financial Education
National Centre for Financial Education
 
Dealing With Divergences - Blackrock 2015 Outlook
Dealing With Divergences - Blackrock 2015 OutlookDealing With Divergences - Blackrock 2015 Outlook
Dealing With Divergences - Blackrock 2015 Outlook
João Pinto
 
Monetary Policy and its impact in Pakistan
Monetary Policy and its impact in PakistanMonetary Policy and its impact in Pakistan
Monetary Policy and its impact in Pakistan
tahirsartaj81
 
News of the week-18oct
News of the week-18octNews of the week-18oct
News of the week-18octjasdeepchawla
 
Ppt on measures to curb continuning slide of rupee
Ppt on measures to curb continuning slide of rupeePpt on measures to curb continuning slide of rupee
Ppt on measures to curb continuning slide of rupeeCA Deepak Sharma
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
Anamika Jaiswal
 
Types of Monetary poicies
Types of Monetary poiciesTypes of Monetary poicies
Types of Monetary poicies
Omswroop Thakur
 
Macro Economics definitions.pdf
Macro Economics definitions.pdfMacro Economics definitions.pdf
Macro Economics definitions.pdf
amatulwasey
 

Similar to Zero interest rate and qe (20)

Events in the Japanese Bond Market
Events in the Japanese Bond MarketEvents in the Japanese Bond Market
Events in the Japanese Bond Market
 
Events in the Japanese Bond Market
Events in the Japanese Bond MarketEvents in the Japanese Bond Market
Events in the Japanese Bond Market
 
The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...
The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...
The Determinants of Long-Term Japanese Government Bonds’ (JGBs) Low Nominal Y...
 
Biegel Waller Investment Advisory Market Perspective
Biegel Waller Investment Advisory Market Perspective Biegel Waller Investment Advisory Market Perspective
Biegel Waller Investment Advisory Market Perspective
 
AFM .pptx
AFM .pptxAFM .pptx
AFM .pptx
 
gp1305a.pdf
gp1305a.pdfgp1305a.pdf
gp1305a.pdf
 
gp1305a.pdf
gp1305a.pdfgp1305a.pdf
gp1305a.pdf
 
Economics ppt project
Economics ppt projectEconomics ppt project
Economics ppt project
 
Market perspective november 2016
Market perspective   november 2016Market perspective   november 2016
Market perspective november 2016
 
Inflation & Bangladesh Economy
Inflation & Bangladesh EconomyInflation & Bangladesh Economy
Inflation & Bangladesh Economy
 
Market Perspective April 2017
Market Perspective April 2017Market Perspective April 2017
Market Perspective April 2017
 
Market Perspective - July 2016
Market Perspective - July 2016Market Perspective - July 2016
Market Perspective - July 2016
 
NCFE Experiences and Basic Financial Education
NCFE Experiences and Basic Financial EducationNCFE Experiences and Basic Financial Education
NCFE Experiences and Basic Financial Education
 
Dealing With Divergences - Blackrock 2015 Outlook
Dealing With Divergences - Blackrock 2015 OutlookDealing With Divergences - Blackrock 2015 Outlook
Dealing With Divergences - Blackrock 2015 Outlook
 
Monetary Policy and its impact in Pakistan
Monetary Policy and its impact in PakistanMonetary Policy and its impact in Pakistan
Monetary Policy and its impact in Pakistan
 
News of the week-18oct
News of the week-18octNews of the week-18oct
News of the week-18oct
 
Ppt on measures to curb continuning slide of rupee
Ppt on measures to curb continuning slide of rupeePpt on measures to curb continuning slide of rupee
Ppt on measures to curb continuning slide of rupee
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
 
Types of Monetary poicies
Types of Monetary poiciesTypes of Monetary poicies
Types of Monetary poicies
 
Macro Economics definitions.pdf
Macro Economics definitions.pdfMacro Economics definitions.pdf
Macro Economics definitions.pdf
 

Recently uploaded

How to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docxHow to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docx
Buy bitget
 
What price will pi network be listed on exchanges
What price will pi network be listed on exchangesWhat price will pi network be listed on exchanges
What price will pi network be listed on exchanges
DOT TECH
 
USDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptxUSDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptx
marketing367770
 
how can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYChow can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYC
DOT TECH
 
Chương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdfChương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdf
va2132004
 
234Presentation on Indian Debt Market.ppt
234Presentation on Indian Debt Market.ppt234Presentation on Indian Debt Market.ppt
234Presentation on Indian Debt Market.ppt
PravinPatil144525
 
655264371-checkpoint-science-past-papers-april-2023.pdf
655264371-checkpoint-science-past-papers-april-2023.pdf655264371-checkpoint-science-past-papers-april-2023.pdf
655264371-checkpoint-science-past-papers-april-2023.pdf
morearsh02
 
Scope Of Macroeconomics introduction and basic theories
Scope Of Macroeconomics introduction and basic theoriesScope Of Macroeconomics introduction and basic theories
Scope Of Macroeconomics introduction and basic theories
nomankalyar153
 
where can I find a legit pi merchant online
where can I find a legit pi merchant onlinewhere can I find a legit pi merchant online
where can I find a legit pi merchant online
DOT TECH
 
how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.
DOT TECH
 
what is a pi whale and how to access one.
what is a pi whale and how to access one.what is a pi whale and how to access one.
what is a pi whale and how to access one.
DOT TECH
 
managementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.pptmanagementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.ppt
SuseelaPalanimuthu
 
Financial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptxFinancial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptx
Writo-Finance
 
BYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptxBYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptx
mikemetalprod
 
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
Vighnesh Shashtri
 
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
Falcon Invoice Discounting
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
VishnuVenugopal84
 
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
beulahfernandes8
 
how to sell pi coins in South Korea profitably.
how to sell pi coins in South Korea profitably.how to sell pi coins in South Korea profitably.
how to sell pi coins in South Korea profitably.
DOT TECH
 
What website can I sell pi coins securely.
What website can I sell pi coins securely.What website can I sell pi coins securely.
What website can I sell pi coins securely.
DOT TECH
 

Recently uploaded (20)

How to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docxHow to get verified on Coinbase Account?_.docx
How to get verified on Coinbase Account?_.docx
 
What price will pi network be listed on exchanges
What price will pi network be listed on exchangesWhat price will pi network be listed on exchanges
What price will pi network be listed on exchanges
 
USDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptxUSDA Loans in California: A Comprehensive Overview.pptx
USDA Loans in California: A Comprehensive Overview.pptx
 
how can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYChow can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYC
 
Chương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdfChương 6. Ancol - phenol - ether (1).pdf
Chương 6. Ancol - phenol - ether (1).pdf
 
234Presentation on Indian Debt Market.ppt
234Presentation on Indian Debt Market.ppt234Presentation on Indian Debt Market.ppt
234Presentation on Indian Debt Market.ppt
 
655264371-checkpoint-science-past-papers-april-2023.pdf
655264371-checkpoint-science-past-papers-april-2023.pdf655264371-checkpoint-science-past-papers-april-2023.pdf
655264371-checkpoint-science-past-papers-april-2023.pdf
 
Scope Of Macroeconomics introduction and basic theories
Scope Of Macroeconomics introduction and basic theoriesScope Of Macroeconomics introduction and basic theories
Scope Of Macroeconomics introduction and basic theories
 
where can I find a legit pi merchant online
where can I find a legit pi merchant onlinewhere can I find a legit pi merchant online
where can I find a legit pi merchant online
 
how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.how to sell pi coins in all Africa Countries.
how to sell pi coins in all Africa Countries.
 
what is a pi whale and how to access one.
what is a pi whale and how to access one.what is a pi whale and how to access one.
what is a pi whale and how to access one.
 
managementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.pptmanagementaccountingunitiv-230422140105-dd17d80b.ppt
managementaccountingunitiv-230422140105-dd17d80b.ppt
 
Financial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptxFinancial Assets: Debit vs Equity Securities.pptx
Financial Assets: Debit vs Equity Securities.pptx
 
BYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptxBYD SWOT Analysis and In-Depth Insights 2024.pptx
BYD SWOT Analysis and In-Depth Insights 2024.pptx
 
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...
 
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
innovative-invoice-discounting-platforms-in-india-empowering-retail-investors...
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
 
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
 
how to sell pi coins in South Korea profitably.
how to sell pi coins in South Korea profitably.how to sell pi coins in South Korea profitably.
how to sell pi coins in South Korea profitably.
 
What website can I sell pi coins securely.
What website can I sell pi coins securely.What website can I sell pi coins securely.
What website can I sell pi coins securely.
 

Zero interest rate and qe

  • 1. Mawuli Koffi Gilbert Bossiade Okuto Suzuki Xinwei Xie Chinmay Naik Joseph Kong Natalia Guerrero Maldonado Team 7 Zero Interest Rates and QE are Ineffective Tools for Stimulating Economy.
  • 2. Agenda ● Introduction ● Zero Interest Rate Policy ● Quantitative Easing ● Arguments ● Conclusion ● Q&A
  • 3. Zero Interest Rate ● Macroeconomic concept of stimulating growth while keeping interest rates close to zero ● It is used during recession
  • 4. An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. QE (Quantitative Easing)
  • 5. Short Term Foreign Investors Net Exports Currency Devaluation Argument 1: Short-term and Long-term Impact
  • 6. Long Term Argument 1: Short-term and Long-term Impact Inflation Up Government Debt Benefit don't outlast QE program
  • 7. Negative Interest Bank of Japan’s Attempt Plan ・Weaken yen against USD ・Increase loans for businesses ・Foreign investments ・Increase capital investment ・Stimulate the economy Result ・Stronger yen ・Stock price crash ・Slumping consumption ・Increased the investments in governments bonds ・Caused negative bond interest rates.
  • 8. QE QE Negative Interest(% Change) Japan Consumer Price Index 2011 12 13 14 15 16 1.5 1.0 0.5 0.0 ▲0.5 ▲1.0 ▲1.5
  • 9. Argument 2: Increase Inequality Widening the wealth gap Fed’s low interest rates inflating stock market values, housing and gold. Benefited richer individual borrowers/investors. However, the wealth gain did little to increase productive investment and consumption. Fixed income receivers, savers without asset and creditors were penalized.
  • 10. Argument 3: Increases debt • Increased debt puts stress on the economy. Government will cut spending or increase tax to pay off debt which lowers the productivity of the economy. • Lowers the country’s reputation if debt is defaulted or other countries lose confidence
  • 11.
  • 12. Conclusion • Short-term and long- term impact. • Increase Inequality • Increase Debt • QE only stabilizes and not stimulates economy • More controlled approach • Monetary policy not only misallocated credit but also redistributed wealth • Lowers productivity of economy • Leads to higher interest rates and crowding out (long-term)