...finally ended its ''zero interest rate policy'' (yes, ZIRP)? After all, it's only a quarter-point rise... - Paul Krugman
I should probably share the rest of the story. There's nothing worse than taking a quote out of context. I do apologize.
August 13, 2000
Reckonings; End Of The ZIRP
We interrupt America's political silly season to bring you a special bulletin: something important and disturbing just happened in Japan.
O.K., I admit that it doesn't look important, especially to Americans. So what if last Friday the Bank of Japan finally ended its ''zero interest rate policy'' (yes, ZIRP)? After all, it's only a quarter-point rise, in a faraway country that doesn't interest most Americans now that it no longer seems a dangerous competitor. And yet I would not be surprised if future economic historians look back at Friday's move as the beginning of the end for an era, and not just in Japan.
What? 2000? That's Japan's quarter-point increase, not our quarter-point increase? Oops! My bad.
My personal guess is that in the near future, whatever optimism people are now feeling about Japan's economy will evaporate, and the nation's malaise will be deeper than ever -- thanks in large part to Friday's action.
Can't happen here! We're on the path to higher rates and nothing can stop us! Not even 35+ years of falling rates! Heck, might even get another quarter-point interest rate hike this year. Maybe, if we're lucky. I mean, it is possible. Right? There is absolutely no way we'll ever slip back into ZIRP again and get semi-permanently trapped, just because Japan did! That's crazy talk!
Why on earth would I share that video here? It makes no sense. The girl does not represent someone trapped in ZIRP and never allowed to change, nor does the old guy represent some Fed Chairman who trapped her. You've got a sick and twisted imagination if you think that! Get your mind out of the gutter. I must have instead shared it because the tune is creepy and hypnotic, which very much appeals to my darker side. That's all. Try not to read too much into it. ;)
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