Economic Crisis: ‘The Edward de Bono Weekly Message’

debobo_cappelliEdward de Bono: “The current economic crisis requires some new thinking. It will not get that. There will be a lot of analysis and references to the 1930 crisis. The methods for influencing the local economy are very limited. There are interest rate changes and there are tax changes. If there is inflation you raise the interest rate. If you are in the eurozone you cannot do that because interest rates are set by the Central Bank in Europe and if other countries do not have inflation you cannot raise the interest rates. It is assumed that if raising the interest rates stop inflation then the opposite should stop deflation. So interest rates may be reduced almost to zero. The effect is weak or absent” (31st March 2009)

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