July 06, 2021
ZIRP Forever?
“…there are eerie historical parallels”
Weekly Report
With the U.S. economy booming, it may seem odd to talk about whether the Fed would ever be able to raise rates again. But there are eerie historical parallels: in recent history, every economic crisis in each decade has become a catalyst sending a major economic bloc into a perpetual liquidity trap.
The natural question is whether the Covid-19 inspired recession will push the U.S. into a similar trap. There are strong reasons for both sides of the argument. If you are interested in hearing our thoughts this issue, contact us at info@alpinemacro.com.
With the U.S. economy booming, it may seem odd to talk about whether the Fed would ever be able to raise rates again. But there are eerie historical parallels: in recent history, every economic crisis in each decade has become a catalyst sending a major economic bloc into a perpetual liquidity trap.
The natural question is whether the Covid-19 inspired recession will push the U.S. into a similar trap. There are strong reasons for both sides of the argument. If you are interested in hearing our thoughts this issue, contact us at info@alpinemacro.com.
