central banks in Japan and Europe to fight deflation

The negative interest rates set by the central banks in Japan and Europe to combat deflation are good for the world economy, estimated this Friday Christine Lagarde, director of the International Monetary Fund. It is an excellent news for close the week with this you begin to see the recovery of the global economy, this is good for the United States of North America and for the European Union, this is intended to achieve goals that for reasons of the decline of the economy have been abandoned.

In an interview with Bloomberg TV, Lagarde said that the unconventional measure of negative rates of short term, in which commercial banks pay to the central banks to store their money, had probably contributed to stronger economic growth.

"Implement these negative rates under the current circumstances was a good thing," he added.

Several European central banks and the Bank of Japan have taken these measures during the last year with a view to increasing the circulation of money in the economy and generate more investment and more expenses.

The economy of Japan has been recovering since the Second World War, and this helps the global economy although the company Americans prefer to invest in the Japanese market and contribute to the economic growth of that country.

Currently Japan is one of the most advanced industrialized countries of the world leaving to one side to China.

In theory, this mechanism should work, but economists are currently studying its effect in Europe and Japan, with the fear that generate suspicion among consumers to consume. It is expected that for the next year the interest rates come down 10% of what it was paying.