Description: Thomas Hoenig, head of the Kansas City Federal Reserve Bank says 0% interest rates lead to inflation and economic imbalances, with an unclear long-term impact.
Source: CNNMoney.com – video report
Date: 06/01/2011
Link: http://money.cnn.com/video/news/2011/06/01/n_ss_hoenig_gps.cnnmoney/
Questions for discussion:
- Do you agree with the economic arguments made by Mr Hoenig?
- What are the consequences for businesses and consumers of continuing to keep interest rates too low?
- What would your advice be to regulatory authorities?
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