Fed's Fischer: We're Not Planning to Go to Negative Rates

The transcript discusses the interconnectedness of global economies, particularly focusing on the role of central banks like the Federal Reserve and the European Central Bank. It highlights debates on economic models, questioning whether simpler models should be revisited. The conversation also delves into the topic of negative interest rates, examining their effects and the experiences of countries implementing them. The discussion concludes with insights gained from these economic strategies and their potential counterproductive outcomes.

How does the interconnectedness of global economies affect the role of central banks?

• It reduces their need to coordinate with other banks.

• It makes them less important.

• It increases their influence on global markets.

• It isolates them from international issues.

What is the main argument of economists like Paul Krugman regarding economic models?

• They advocate for more complex models.

• They suggest returning to simpler models.

• They want to eliminate models altogether.

• They believe current models are perfect.

What is the basic structure of the Fed's economic model?

• It is large and quite complicated.

• It is simple and easy to understand.

• It is only used by students.

• It is outdated and rarely used.

What have central banks learned about negative interest rates?

• They work up to a certain point.

• They are ineffective in all cases.

• They are universally successful.

• They are only used in the United States.

Which country is reconsidering its approach to negative interest rates?

• Canada

• Japan

• Germany

• United States