Negative Interest Rates: Insidious Kill…

Plagued by a persistent lack of demand for loans in economies that refuse to respond to more conventional stimulus attempts, several of Europe’s central bankers have cut key interest rates below zero for more than a year. Japan now has caught the disease in an economy that has not responded to any of Abe’s arrows, including the one he has never had the nerve to fire, which is restructuring. The idea has spread to Sweden to Denmark to Switzerland and Janet Yellen, who leads the US Fed, has said if the US economy worsens, negative rates “could be on the table.”

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