Negative Interest Rates for Deposits?

March 27, 2016

There are now three major central banks which apply negative interest rates to bank deposits (ECB, Switzerland, Japan). If banks are disinclined to lend, or apply theirsurplus funds to investment instruments, should they be pressed to do so? Isn’t this another unwise interference in traditional economic activity? If I were a banker I would think so. No doubt bank customers like you and I will once again be expected to pick up the tab for the unintended consequences.

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