Why zero interest rates are here to stay
- Written by John Quiggin, Professor, School of Economics, The University of Queensland
ksb/ShutterstockIt’d be wrong to interpret last week’s Reserve Bank decision to cut its cash rate to 0.10% as an emergency response to the COVID crisis.
The implication would be that once the pandemic is controlled the economy will return to something like the pre-crisis “normal” and the ultra-low interest rates will end.
In...