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Negative Interest Rates (Japan (Why? (More information, 2016 (5 year…

- - - - Talk a little about it, but say that. this is not very related to automobile industry
    - - Why?
        
        https://docs.google.com/document/d/1N7ojSzEmDBBz1pPnFXEKXCDNiM2IxABTi7kuctbxkQU/edit?usp=sharing
        
        Economic Stagnation
- - - - Beneficial to multinational corporations
    - - Protective industry, boosts national consumption
      - Increase in employment
  - - - Increase in GDP of an economy over time
        
        GDP= Consumption + Investment + Government spending + Net export
        
        Circular Flow Model of Income
      - Disposable Income
        
        Luxury vs Necesssity
      - https://www.investopedia.com/articles/economics/08/monetary-policy-recession.asp
    - - Increase money supply, lower interest rates
        
        Increase in investment, as well as other factors such as consumption
        
        Shifts AD to the right
        
        Cause short-run inflation
        
        Philips curve (short-run)
        
        Low and stable inflation allows consumers to buy now, as they know prices will surge. Stable to make it consistent and too high will spark too much economic growth, and wages will grow slower than goodshttps://www.thebalance.com/why-is-inflation-good-4065995
        
        Paradox of Thrift
        
        https://www.investopedia.com/ask/answers/111414/how-can-inflation-be-good-economy.asp
        
        Bad for export, as it gets more expensive to produce inside
        
        But isn't low interest rate bad for currency?
        
        Increase in GDP
        
        Fisher equation
- - - - Maybe compare this with exchange rate
        
        https://www.xe.com/currencycharts/?from=USD&to=JPY&view=10Y
    - - Inflation occurred from negative CPI
        
        Relationship between inflation and output (https://docs.google.com/document/d/19RQpZz-Lfp90GpWGv2sRRwPY-FtI_crv90nRfSNoUQw/edit?usp=sharing)
        
        Try to explain that dip in inflation???
    - - Some inflation of CPI transportation
    - - Inflation affects export
- - - - Lenders have to pay interest to the borrowers
        
        Motivates the people to spend instead of lend
    - - Lower percentage means more borrowing, less savings
      - Higher percentage means less borrowing, more saving