A little over a year ago, we said negative rates were the Manchester United of monetary policy. By that, we meant they annoy a lot of people and their glory days were behind them.But is the policy, like the Red Devils (who went top of the Premier League last night) set for a comeback? It seems so — at least if some members of the Bank of England’s Monetary Policy Committee have their way. The Bank is in the throes of a review into whether venturing below the zero lower bound can help heal the UK’s economy, which has been one of the worst affected by Covid-19. Yesterday, Silvana Tenreyro, an external member, gave a vigorous defence of negative rates. The speech is here. Whatever you think of negative rates, what seems odd to us is that the Bank is only now considering
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A little over a year ago, we