Deficit Owls | Are Zero Interest Rates Inflationary Or Deflationary? @deficitowls5296 | Uploaded August 2016 | Updated October 2024, 5 hours ago.
Warren Mosler explores some of the possible deflationary consequences of lowering interest rates, defying the common wisdom that lowering the interest rate causes inflation. The mechanisms he discusses work in reverse too: higher interest rates mean increased production costs for business expansion potentially leading to higher prices, and more net interest paid to savers, particularly by government, leading to higher demand.

See the whole video here: youtube.com/watch?v=hTWEFKH144M