Inside the Unprecedented World of Negative Yields

The video discusses the unprecedented situation of negative yields in sovereign bonds, the implications of interest rate hikes on income distribution, and the link between income division and political extremism. It highlights the effects of globalization on income inequality and the challenges of addressing these issues through policy. The discussion also covers the current state of global growth and the need for both monetary and fiscal policy to tackle growing inequality and maintain social cohesion.

What is the significance of the current situation with sovereign bonds?

• They have no impact on the economy.

• They are yielding exactly 5% globally.

• They are at negative yields, which is unprecedented.

• They are at historically high yields.

How has globalization affected income inequality globally?

• It has only affected income inequality in Europe.

• It has increased income inequality globally.

• It has reduced income inequality globally.

• It has had no effect on income inequality.

What is a major challenge mentioned in addressing the effects of globalization?

• Eliminating all forms of trade.

• Training and investing in people who feel left behind.

• Reducing taxes for the wealthy.

• Increasing tariffs on imports.

What is the current state of global economic growth according to the transcript?

• It is below global potential output growth.

• It is at global potential output growth.

• It is not measurable at this time.

• It is above global potential output growth.

What policy is suggested to tackle growing inequality?

• Increasing interest rates.

• Implementing a guaranteed minimum income.

• Eliminating all taxes.

• Reducing government spending.