Although interest rates are at all-time lows – even in negative territory in some countries – global growth remains tepid. Kemal Derviş of the Brookings Institution says that it is high time for central bankers to band together and start hiking up interest rates in order to ward off speculation and nip potential bubbles. Along with higher rates, policy makers should implement ways of injecting “helicopter money” into their economies to provide stimulus, build up infrastructure and educate people. getAbstract suggests Derviş’s provocative but topical paper to policy makers, economists and business executives.
In this summary, you will learn
- How to promote economic growth worldwide,
- Why governments could use fiscal stimulus to help reduce income inequity, and
- Why central banks worldwide should act in concert on monetary policy.
About the Author
Kemal Derviş is vice president and director of global economy and development at the Brookings Institution.