Dirate Bad | The
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When a central bank sets rates significantly above the neutral level, borrowing becomes punitive. Businesses postpone capital investment; homebuyers exit the market; credit cards and auto loans become unserviceable. This "dire rate" is bad because it triggers: the dirate bad
Avoid this movie like the plague. Instead, watch paint dry or grass grow. Anything is better than this toxic waste dump. : A detailed overview is available on Wikipedia
: Classic pirates like Long John Silver were created by authors like Robert Louis Stevenson to be compelling, memorable, and often darker than modern interpretations. Avoiding Common "Bad" Writing Habits This "dire rate" is bad because it triggers:
Once rates hit zero, they cannot go much lower (negative rates have limits). In a severe downturn, even a zero rate may be too high (the "liquidity trap"). Here, the "dire rate" is not a choice but a constraint. Japan from 1992 to the present has suffered from a chronic inability to set a sufficiently negative real rate, leading to decades of stagnation.
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