Analysis of policy of extremely low interest rates and unlimited money printing on the real economy

conference paper

English

The paper analysis contemporary ways of interest rates utilising complemented with practically unrestricted "money printing" within the framework of monetary regulations of central banks, with special attention to cases when extremely low or even negative interest rates are announced. The first part is focused on theoretic definition of the importance and functions of interest rates and on the necessity to keep restricted amount of money in the financial and economic system, in the sense of "standard" economic theory, or in accordance with individual theoretic approaches respectively. Subsequently, we analyse the influence of utilitarian exploiting of extremely low or even negative interest rates, supported by extreme money printing, on the operation of economic subjects, first and foremost on individual kinds of financial institutions. And subsequently, in contrast with theoretical economic principles, impacts of this monetary policy, combined with deficit fiscal policies of governments to operation of real economy are analyzed; before all with focus on the most imporiant national or multinational economic units of the world. In conclusion, based on acquired knowledge future development is predicted, not only from the point of view of future development of the world economy, but from the point of view of the future of human society.

Financial Markets, Interest Rates, Market Economy, Printing Money, Risk Faciors

BRAUNER, R.

1. 2. 2018

978-80-87325-12-4

European Entrepreneurship Forum 2017

16

28

189