Negative Rates in Focus

The video discusses the ongoing debate about negative interest rates, highlighting the perspectives of the BOJ and ECB. It reflects on historical monetary policies since 2008, drawing lessons from the Great Depression. The discussion emphasizes the need for structural reforms to achieve sustainable growth, noting the limitations of monetary policy. The video also explores potential growth rates, economic structure, and the importance of fiscal policy. It concludes with a focus on global economic challenges, particularly in the service sector, and the need for structural reforms to boost growth.

What is one of the main limitations of monetary policy in achieving economic growth?

• It can only accommodate the price level.

• It can directly increase productivity.

• It can permanently reduce unemployment.

• It can solve structural economic issues.

What are the components of the potential growth rate?

• Consumer confidence, savings, and investment

• Labor, capital, and productivity

• Interest rates, inflation, and GDP

• Government spending, taxation, and exports

How does high unemployment affect the potential growth rate?

• It increases the potential growth rate.

• It has no effect on the potential growth rate.

• It stabilizes the potential growth rate.

• It decreases the potential growth rate.

What is a significant challenge faced by Japan in terms of economic policy?

• Rapid population growth

• Weak loan growth

• Excessive government spending

• High inflation rates

What sector dominates the world economy and could benefit from liberalization?

• Technology

• Agriculture

• Manufacturing

• Services