Kimball says U.S. should prepare for negative interest rates
"Could negative rates be next on the Fed's policy menu?" - CNBC. 9/20/2015.
Negative interest rates mean that businesses and consumers are essentially paid to borrow money, which may stimulate growth via their subsequent investment in the economy. Although only theoretical in the U.S., Miles Kimball says negative interest rates can be a critical central banking tool in ending recessions and fighting deflation. While Kimball doesn't believe negative rates are necessarily appropriate for the U.S. today, he wants to make sure "that the intellectual foundation for negative interest rates is laid in time for the next recession."