The Money’s More Than Free. Why Won’t Europeans Borrow?

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The Money’s More Than Free. Why Won’t Europeans Borrow?
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Streetwise: Those looking enviously across the Atlantic at negative interest rates in the eurozone may be surprised by the lack of a debt-driven boom

Which explanation you prefer determines whether you think the European Central Bank is right to be considering another cutWhen it comes to interest rates, the U.S. and Europe are upside down.

A big worry about the expected interest-rate cut in the U.S. is that it will encourage too much borrowing, inflating bubbles in debt and equity markets. A big worry about the expected interest-rate cut in Europe is that it will discourage borrowing, with many companies, households and governments paying down debt even with negative central-bank rates.

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