Central banks in Europe are stuck in a corner. Their interest rates are at or below zero and now the economies in Germany and Italy are dropping into recession while markets panic and need further monetary stimulus. The problem is that central banks cannot cut interest rates well below zero because they risk a bank run where investors take their money out of the bank to keep it in cash at home at zero interest rates. As
Please note: This post was published on 1 April 2020 and is an April fool’s joke.