OECD/Euro rates Not the answer

The OECD thinks that the European Central Bank should cut interest rates. Jean-Philippe Costis, the chief economist of the rich countries’ economics club, argues that a cut of 0.5% would help stimulate demand but would not cause financial damage. Both claims are misguided. Giving away money has certainly stimulated activity in the US. Americans responded enthusiastically to the opportunity to borrow at interest rates below the rate of inflation. But even that policy has hardly been an unqualifie...