How Low Can They Go? Interest Rates in a Time of Deflation

Bank prime rate minus the 12-month change in the CPI.
Negative interest rates prevent a deflationary collapse and instead stretch it out for as long as the central bank can maintain the negative rates. A deflationary collapse or a sustained inflationary growth cycle or loss of faith in currency will end it.

Check out home prices in America's rural areas or inner cities. They were frontline in the decline of the country. As the country takes on more of the demographics of inner cities and, barring a successful rebalancing of trade and economic reform that doesn't involve a currency devaluation, what happened to home prices in these areas will spread to the entire nation. There will plenty of room for negative interest rates, up until the currency crumbles.

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