European Central
The European Central bank has decided to lower the types to 1%, marking a new historical minimum. Trichet has not discarded new reductions in the future, although it has said that 1% are the suitable type at the moment. Ever since type of interest official marked maximums historical in summer happened, to 4.25% (we remember that in a decision discussed enough, they got to raise 0.25% when the economy already was being deflated), the official price of the money accumulates seven slopes among one and two rooms in barracks (each room in barracks is equal to 0.25%). Aside from the error that supposed the commented ascent, I had been in favor of which the European monetary authority more had been decided in the slopes, that it lowered more of blow, since made the Bank of England. Stepper, an internet resource. It is not that the result of this one has been better (the circumstances are not equal either) but it gives the impression me that slope to dropper was not able to stimulate to the economy, that always hoped that there were new reductions, consequently now we are in a type near zero, and the economy follows suspended. In any case, in eight months it has lowered more than three points, which must have been a quite great stimulus. And nevertheless, the effects of this action enough have been limited.
The saving that can perceive the consumers in their mortgages can be seen limited in many occasions by ground (that is to say, mortgages that have eurbor minimum ), in other occasions not yet have taken place the revision of types (that usually is annual), and those that have had already it prefer to save the rate of saving in Spain happened to hardly go up to around 10% to 24% in a year. As far as the new credits, the banking organizations are quite obstinate to grant them, and apply to prime differentials of risk, they call to them very high, they are gaining consequently them with these low types are the banks, since it explained days ago. In addition, the increase of the saving, that in other circumstances would be positive, can now not be it, by the paradox of the frugalidad, according to which, when falling the consumption (like it is happening), less takes place and unemployment is generated (in a spiral without a clear end) consequently in the end the society altogether is poorer. And on the other hand, we have been immersed in a situation of trap of the liquidity described by the Keyneses for 75 years (in the heat of Great Depression), since all the money that becomes congested to the system by different routes hoards in the form of liquidity on the part of the Banks, and the companies and the consumers, before the bad perspective, are not arranged to invest nor to spend. This scene already it has lived Japan in the call Lost Decade, so something we would have to learn of the experience. Therefore, it has sense to continue lowering the types? From my point of view, no. Another type of activities that can lower the price of the long term types can have more feeling now, but the margin of the conventional monetary policy is exhausted.