Thursday, August 30, 2012

IMF: Central Banks Must Keep Rates Low

The chief economist of the International Monetary Fund, Olivier Blanchard, tells french paper Les Echos today that central banks around the world should keep interest rates very low given a lack of recovery in private demand.

“So long as there is no recovery in private demand,” Blanchard tells the paper, “it is absolutely vital–maybe even beyond 2010.�If that creates bubbles between now and then, different means must be found (to address them), buy it is essential for economic activity to start up again.”

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