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Negative Interest Rates – Bloomberg QuickTake

Perhaps the rearview mirror will have shown that this was the biggest financial experiment and bubble of an era.

Imagine a bank that pays negative interest. In this upside-down world, borrowers get paid and savers penalized. Crazy as it sounds, several of Europe’s central banks cut key interest rates below zero in 2014, and now Japan has followed. By mid-2016, some 500 million people in a quarter of the world economy were living with rates in the red. Unthinkable before the 2008 financial crisis, the idea is to jolt lending, spur inflation and reinvigorate the economy after other options have been exhauste

Source: Negative Interest Rates – Bloomberg QuickTake

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