The Fed, which has already lowered short-term interest rates to near zero, should start to charge banks a small interest rate instead of paying a small rate for holding their extra money. Clinton says Sweden did this after the financial crash.
“Now, Sweden is growing at 5.5 percent, much faster than the United States,” writes the former president. If the Fed imposed even a modest fee, he reasons banks might be more willing to lend so they could make money, not lose money, on their cash. “It’s worth a try,” he writes.
