- Central bankers will probably still believe in negative interest rates for some time, but will come to the conclusion that “they just haven’t done enough of it,” Gundlach projected.
- Chief among the policy mistakes, Gundlach said, is negative rates.
- Those bankers will figure out the actual consequences of their policies, and call for fiscal stimulus: “When that comes, that’s when the game will change,” Gundlach said.
- “When you go to negative interest rates, you do not stimulate consumption, you necessitate saving,” Gundlach said.
- Negative interest rates are the definition of deflation.”
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@bitcoinagile: “Gundlach: Central banks dont understand their policiesand theyre out of control #bitcoin”
Central banks are “out of control” because they don’t understand their own policies, according to Jeffrey Gundlach, DoubleLine Capital CEO.
Gundlach: Central banks don’t understand their policies—and ‘they’re out of control’