Eurobonds are absolutely wrong. In order to bring about common interest rates, you need similar competitiveness levels, similar budget situations. You don't get them by collectivizing debts.
After the accession to the euro zone, interest rates declined substantially in Portugal.
For people who grew up in the last four decades of the 20th century, it is hard to grasp the concept of negative interest rates. How is it even possible? If interest rates are the price of money, is the marketplace broadcasting that money is on sale? Are we just giving it away?
Demonetisation is a disinflationary process. So, this will bring down prices in the long run. It will also help in bringing down interest rates.
You cannot take bank interest rates very sharply down: you will lose your deposit franchise.
When interest rates are coming down, you cannot have high margins.
Nobody likes high interest rates.
If we were to underrun our inflation objective over a period of time that we tried to increase interest rates, I think that would be worrisome.
Negative interest rates have been employed by many, many central banks.
I would also certainly continue to keep loan repayment interest rates as low as possible. And I would spread the financial aid a little less thinly across all income brackets.
