The ECB cut interest rates to a new record low in a bid to boost the economy . But economist David Woodruff says the approach will not work for the economy . They aim to do this by lowering banks ' costs of borrowing , by imposing some small costs on banks that sit on money rather than lending it out , and by making it cheaper for banks to borrow from the ECB to fund lending to small businesses . What is needed are policies favorable to consumers and spenders , he writes .
The ECB cut interest rates to a new record low in a bid to boost the economy . But economist David Woodruff says the approach will not work for the economy . What is needed are policies favorable to consumers and spenders , he writes .