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WIll it be like what was feared for Y2K ?

Will all the banks pc's go bang as they are not designed to work below 0%


COBOL doesn't have an explicit positive floating point only data type from what I'm aware of so it would be less painful than Y2K. I'm willing to bet that there's a lot of user interface code out there that won't accept negative numbers for interest rates though. Could be very messy!

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As I have said before, NIRP won't 'spur lending'.

What is does is accommodate an otherwise unavoidable contraction by systematically and generically deleting a portion of claims on future output (since said contraction implies that future output will be smaller than it is now). NIRP actually withdraws liquidity, so it is very much anti-QE, as antimatter is to matter.

Its important to get ones head around the fact that NIRP is what happens when a society collectively decides to stop chasing growth, and admit the possibility the their economy may expand and contract in equal measure around some steady state level.

The EZ represents the worlds most mature society (in terms of the historical record, demographically an culturally) , so its natural that this kind of decision falls to them first.

Regarding the article, ECB NIRP won't result in a EZ expansion, rather it will be against a backdrop of slow deflation, and a steady or slightly strengthening euro.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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