Negative Interest Rates, Recession and Gold

9 Pages Posted: 13 Nov 2019

See all articles by Dietmar Peetz

Dietmar Peetz

IFARA (Institute for Applied Risk Management)

Date Written: September 23, 2019

Abstract

What began to unveil in the beginning of 2018 has become a reality since mid-2019: the global economic slowdown. What is unusual is that it is taking place synchronously, similar to the situation during the financial crisis. How could that happen when the central banks have been trying to stimulate the economy with interest rates close to or below zero for years? What is also concerning is how openly the central banks are showing their helplessness. Is this the end of capitalism,as skeptics say, or is this just a short-term dip of endless economic growth? In this first section we want to examine the causes of the economic downturn and explain the consequences for investors.

Keywords: Financialization, debt deflation, negative yields, gold, asset inflation, speculation, capitalism, profit rate, Economic Development Model, Kondratieff cycle

JEL Classification: B52, E31, E51, G01,N45, P34, R31

Suggested Citation

Peetz, Dietmar, Negative Interest Rates, Recession and Gold (September 23, 2019). Available at SSRN: https://ssrn.com/abstract=3480368 or http://dx.doi.org/10.2139/ssrn.3480368

Dietmar Peetz (Contact Author)

IFARA (Institute for Applied Risk Management) ( email )

Zurich
Switzerland

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