Interest rates in the advanced economies are set to be lower and lower, and many Economists are worried this may cause dangerous deflation. I have written about this in two articles earlier this year, In Denmark You are now Paid to take out a Mortgage and How low can the interest rates go?
Now deposit interest rates at the ECB and some other European central banks are below zero. In a video from earlier this week, the Financial Times Christopher Thompson and Ferdinando Giugliano discuss why central banks took such a dramatic step and if negative rates are having the desired effect.
Sub-zero Rates
The post The Damocles Impact of Sub-Zero Interest Rates appeared first on Bearing Consulting.
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