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Money rains and Bernankeism

Money Rains
“Money rains are a clean way to study theoretically the effects of increases in the supply of money. In practice, it seems a bit difficult to envision how the Federal Reserve could literally implement a money rain – that is, give money away either through directly disbursing currency to the public or by disbursing it through the banking system. The political difficulties that are likely to arise from the Federal Reserve determining the distribution of this new wealth would be daunting.”
Negative interest rate economy
“No one would be willing to hold any asset that pays a negative nominal rate, as long as zero-interest money is available as a store of value. The strategy for eliminating the zero bound, therefore, is to make money pay negative nominal rate, by imposing some type of “carry tax” on currency and deposits”

It goes on to add “It’s easy to envision such a system….. for most part, the technology to implement such a system is already in place.”
Source: Para from Fed research papers. Cref: GBD report
:) Falkor

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