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It cannot afford to pay an interest rate much more than 200 basis points over German bonds, which is the premium that the IMF reckons reflects the Spanish economy's intrinsic risks.
They are paying an interest rate much lower than LIBOR or the rate of inflation, so effectively people are paying to put their money with the US government.
It is hard to push the nominal interest rate much below zero, which means that the real interest rate can only be as large as the inflation rate.
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But in Mexico, high costs, inefficiency and limited competition keep interest rates much higher.
Without the commitment to a balanced budget, the Fed would have raised interest rates much earlier.
Janet Yellen, the Fed's doveish chief, will not boost interest rates much until wages rise faster.
A later agreement established the European Central Bank, which manages interest rates much like the United States Federal Reserve.
The central bank has limited room to cut interest rates much beyond its 25-basis-point cut on January 29th.
(Remember that to slow runaway growth and head off inflationary forces the Fed raised interest rates much higher than many Wall Street forecasters expected).
But many forecasters also say that Beijing now has little room left to increase reserve-requirement ratios much further or to lift interest rates much more.
QE aims to stimulate demand by lowering nominal long-term interest rates, much as conventional monetary easing works by lowering short-term nominal rates.
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