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The 45th International Exhibition of Inventions in Geneva will kick off on March 29 and last for a week at Palexpo in Switzerland. It is one of the biggest events in the world to be solely dedicated to inventions. Last year, the conference had more than 750 exhibitors from 48 countries showcasing their creations. It included works from commercial companies and enterprises, inventors and private researches, universities, associations and financial organizations. The event was attended by more than 60,000 people.
While I was working for Horyou, I had a chance to visit this show where inventors from all over the world come to showcase their incredible works. We’ll probably be using some of them in the next 10 years! It was incredible to interact directly with the inventors who talked about their projects, and make fruitful contacts with many other manufacturers, users and entrepreneurs, both national and international. I’m glad I was given a chance to photograph their excited faces and creations.
A few of the many fields present there caught my attention, among which environmental protection, energy, watchmaking, domestic appliances, medicine, motors & cars, to name but a few. My per…
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Introduction
As the global oil and energy prices plummeted in 2015, so did the inflation and growth rates. This left most central banks in quandary as inflation and growth rate numbers ran far below their targeted levels.
This article looks at the successes and failures of the current expansionary monetary policy regimes in the world with particular emphasis on the economies employing the negative interest rate policy.
What is Negative interest rate policy?

A negative interest rate policy is a monetary policy tool whereby nominal target interest rates are set with a negative value.
Rationale for Negative Interest Rate Policy

During periods of economic downturn and deflationary pressures, central banks often lower rates to stimulate growth and to raise the inflation rate. The main objective of negative rates is that they provide an incentive for private banks to make loans. With the negative interest in place, storing money at the central bank in the form of reserves or holding lots of cash will become unattractive and projects that were not worth funding even in a low-interest-rate environment might now look worthwhile.
In some cases, central banks turn to negative rates to lower…
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juraj avatar
juraj 3 Aug.


Ilolor- it does not matter what the CBs state on their website, important is what they actually DO and how they make their decision.

https://fred.stlouisfed.org/series/PCEPILFE/#0

Fed never even declared its 2% target in the way ECB did, yet we are presuming they want to achieve 2% inflation. Their models are based upon PCE numbers and when you look at the history it becomes clear that FED always acted as if they were targeting core PCE. They were ok with headline inflation of 3%+ yet core PCE was at roughly 2% so they did nothing. Back 3 years ago when headline surpassed 2%,

juraj avatar
juraj 3 Aug.

Fed was in no hurry to lift the accommodation  because core PCE was still well below 2%.

If ECB officials declined to cut rates and step up QE saying core inflation was still positive and much better than headline, then they are de facto targeting core and not headline.

And if BoJ is refusing to step up easing for 2 years because core inflation is faring well, even though headline is back below 0 then they cannot be targeting headline inflation, no matter what their website says.

And lastly there are good reasons why you should overlook supply shocks (food&energy)

juraj avatar
juraj 3 Aug.

I am finished here- the comment system is a piece of... limiting me to under 600 characters which makes it impossible to express my intricate arguments.

Take care, it was a nice talk to you.

Mattie avatar
Mattie 3 Aug.

More often than not, it is for political reasons that the Fed Banks raise or lower rates. 

FXRabbit avatar
FXRabbit 26 Aug.

Very interesting article!

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